The Queensland Government has given in-principle support to the  proposed merger of Central Queensland University (CQU) and Central Queensland Institute of TAFE (CQIT).

Premier Campbell Newman said the creation of a dual-sector institution would attract a greater number of students from both the international and domestic student markets.

He said that in coming to its decision Cabinet considered the Ernst and Young Due Diligence Report which outlined some concerns around the proposed merger.

Cabinet support is conditional on CQU and CQIT addressing concerns around financial and governance issues raised by Ernst and Young in the Report.