UK universities should push to become world leaders in online higher education, ministers will say tomorrow, despite the failure of the UK e-University four years ago.
The universities secretary, John Denham, is likely to call not for a revival of the UKeU, which collapsed in 2004, but to develop a "global Open University in the UK".
A report for the government on the future of British higher education online suggests the UK is seen as world-class, and often world-leading, in networking, content and digital libraries, as well as access management and many areas of e-learning.
But it lags behind in generating and making available high-quality modern online learning and teaching resources.
The report by Prof Sir Ron Cooke, chairman of the UK universities' Joint Information Systems Committee, suggests creating centres of expertise in educational technology and e-teaching through clusters of institutions, with comprehensive staff and student training.
Learning resources should be grouped together, coordinated nationally and provided freely, he will say.
Institutions should be encouraged to use virtual education technologies for their students and share them with similar universities, the report suggests.
Effective and competitive online learning at both undergraduate and postgraduate level would help meet students' changing needs and stimulate growth in both higher education and the skills sector, and save staff time.
"Failure to do so will reduce the UK's ability to exploit e-learning," it says.
An aide to Denham said he saw an opportunity for the UK to dominate online HE learning because of the strength of the UK's reputation, language and location.
"There are domestic benefits to running a shared system and those shouldn't be overlooked but it would also provide opportunities for universities in terms of attracting international students and doing some distance learning," she said.
This would mean more international students either studying here part-time or in their own country.
Denham also wants to introduce more flexibility for students either to take a longer time to complete a degree or swap universities.
Shared resources would help that to happen.
Cooke's report will say that more effective leadership is needed at all levels to exploit the existing infrastructure.
"It is essential that the UK does not lose its lead and continues to play a full and leading role internationally in the ICT world," he says.
Attempts to set up an "e-University" to offer British online higher education courses worldwide collapsed in 2004.
MPs attacked the project for being an "absolute disaster" and "shameless waste" of millions of pounds.