The NT Government will give the struggling Charles Darwin University an extra $7 million.
The government already provides $65m annually to CDU.
It follows a review of the university's delivery of Vocational Education and Training and the tabling of the university's annual report this week confirming a $21 million deficit from last year.
The decision comes as negotiations continue with Katherine teachers over the controversial $500,000 cut in rental subsidies as part of the NT Budget fix.
Workforce Training Minister Selena Uibo said: "In line with recommendations from the review, we have provided a one-off funding contribution to support the university's continued delivery of VET and ensure its long-term viability."
Opposition leader Gary Higgins said the bailout followed questions in Parliament this week on speculation the Government will be funding the redundancy of staff at Charles Darwin University to the tune of $7m.
CDU's review made seven recommendations CDU should implement over a three year period to improve its fiscal position.
One of those recommendations was that the university ask the NT Government to financially support the actions it needs to take to address the deficit.
The $7 million one-off funding contribution from the Government for VET delivery comes in addition to the $65 million in ongoing annual funding the government provides to CDU, predominantly for the delivery of VET courses.
In its annual report, CDU said as part of the 2017/18 NT Government VET Capital Funding Program, the university refurbished four accommodation blocks at the Katherine Rural campus.
"The accommodation is now modern, comfortable and fit for purpose, providing 42 rooms for students accessing courses on campus," the report states.
Ms Uibo said: "The Territory has one of the highest rates of VET engagement in Australia and CDU is our largest provider of these courses, including in remote communities.
"We want more Territorians, particularly Aboriginal Territorians and those from remote communities, to continue to have higher education opportunities.
"In line with recommendations from the EY independent review, we have provided a one-off funding contribution to support the university's continued delivery of VET and ensure its long-term viability.
"The Federal Government's Mid-Year Fiscal and Economic Outlook in 2017 froze funding to universities without warning. This hit regional universities such as CDU hard.
"The Government recently launched a seven-year international student strategy that aims to quadruple the population of overseas students by 2025 and boost the market's current $91 million contribution to the Territory economy to more than $300 million.
"Key to this plan is a new CDU city campus, which was secured under the Darwin City Deal. It will not be affected by the university's current financial situation."
Mr Higgins said the Government continues to waste hard earned taxpayer money.
This question over the $7m bailout was one of 36 asked by the Opposition which Mr Higgins said largely went unanswered by the Government during the two weeks of August sittings.
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