This comes after Otago University as of April 30 recorded a 4.6% drop in total international fee-paying equivalent full-time students compared with last year - which has partly been put down to a perception there is a high risk of earthquakes in Dunedin after Christchurch's 6.3 magnitude earthquake in February last year.
Otago University international pro-vice-chancellor Prof Sarah Todd said she had expressed an "informal" interest with Education New Zealand, the Crown agency responsible for promoting the country as a destination to international students, about Dunedin education providers being able to access the funds, because the earthquake had affected student numbers at institutions throughout the South Island, not just those in Christchurch.
Any proposal seeking to receive funds would include other education providers in Dunedin, including primary, secondary and tertiary institutions. As yet, no proposals asking for funding had been put forward, Prof Todd said.
The $5 million in extra Government funding to market Christchurch to international students was announced by Tertiary Education Minister Steven Joyce in March, just after Ministry of Education figures showed international student numbers in the city dropped 37% in 2011.
"As Christchurch moves into its rebuilding phase, it is the right time to start encouraging more overseas students to study in the city's schools, universities, polytechs and private training establishments," Mr Joyce said at the time.
Institutions outside Christchurch were not mentioned in the announcement.
Prof Todd told the university council last week Otago University was having trouble convincing overseas tertiary institutions that Dunedin was not an earthquake risk.
Numbers had also been affected by fewer international pupils going to Christchurch high schools, some of whom came to Otago University to study once they left school, she said.
Otago Polytechnic communications manager Mike Waddell said while he thought Christchurch should be the "number one" priority, the $5 million funding should be used to help education providers throughout the South Island.
This was because a mistaken perception that "the whole of the South Island ... [was] devastated" by last year's earthquake had put international students off studying at education providers throughout the South Island.