The state government has committed $26.6 million to the University of New England's proposal to develop a 500-person campus in the city's CBD, however it will need federal government funding to come to fruition.

Tamworth Business Chamber president Jye Segboer said while "some were disappointed by the state government’s funding commitment", universities were traditionally funded by the federal government.

"So far the federal government has remained tight-lipped on the project," Mr Segboer said.

"I’m encouraging New England MP Barnaby Joyce to sit down with those involved to find out where the federal government stands.

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"With a record spend on university funding, we believe it’s time for the federal government to come forward, take part in discussions and make its position known."

Mr Joyce previously told The Leader he was very close to securing $10 million for the campus - however, that was when the state government was believed to be committing $43 million.

Of the seven Evocities, a group of regional cities in NSW, Tamworth is the only one without an established university presence.

Mr Segboer said without one, the region was being left behind.

"A university in Tamworth would bring unprecedented benefits to this city," he said.

"This project is vital in terms of moving our region forward. A university campus would boost local workforces by allowing people to study close to home.

"It would also ensure Tamworth becomes a destination for students, in turn attracting more people to our region."

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