Britain's famed Cambridge University is considering setting up a branch campus in Malaysia in what would be a major boost towards its goal of becoming an education hub, a report said today.

The New Straits Times quoted a higher education ministry official as saying that discussions on the matter were under way.

"There is a possibility that they may set up a branch here, but nothing has been confirmed yet," he said.

The daily said Deputy Prime Minister Najib Abdul Razak had met with top education ministry officials to discuss the proposal.

There are 35,000 foreign students in Malaysia but the government plans to lure more foreign universities to set up campuses here and attract more than 100,000 students in the long-term, the report said.