More funding is needed to halt the slide of New Zealand's universities down the world rankings.

The call comes as Auckland University plunges to its lowest ever position on the Times Higher Education rankings, slipping 27 places to number 192.

Vice-Chancellor Stuart McCutcheon said it's a trend that's affected all our universities.

"Unless New Zealand is prepared to invest more strongly in its universities, this is a trend we will see continue".

He said it's becoming increasingly difficult to attract international students, who are heading to better-funded universities overseas.

McCutcheon said it all comes down to a lack of funding.

"We operate with the lowest levels of income per student in the developed world and as in everything in life, if you want quality you have to be prepared to pay for it"

LISTEN ABOVE AS STUART MCCUTCHEON TALKS TO MIKE HOSKING