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The move will dismay Orbán's supporters in Brussels and the US administration. Orbán's partners in the European parliament, the European People's party (EPP), have largely remained silent over allegations of corruption, a crackdown on free media and rule of law issues in Hungary. However, EPP leaders have repeatedly suggested that closing CEU could be a red line.

The US ambassador to Hungary, David Cornstein, a longtime friend of Donald Trump, has made securing a deal on CEU one of his top priorities since arriving in Hungary in the summer. Although Trump has also disparaged Soros, Cornstein said during his Senate confirmation hearings that he understood how important the university was to both Democrats and Republicans.

"Of my first 100 days, I have spent more time on Central University [sic] than on any other subject," he said in a speech at CEU this month. "Right after I unpacked my bags and found out where the office was, the next stop I made was right here at the university. That was to show how important this subject was, not just to the American ambassador but to the American people as well."

Although he repeatedly misstated the name of the university, he said he had raised the issue during a meeting with Orbán, and planned to facilitate meetings between the Hungarian government and the university with the aim of resolving the issue. It now appears those meetings were fruitless.

Orbán's office released a statement denouncing the CEU decision, suggesting it was simply a means of attracting attention.

"The announcement by the CEU is a Soros-style political ploy. Up to now Central European University has operated here, it does so now, and we think that it will continue to do so in the future ... The Hungarian government does not concern itself with Soros's political ploys."

There was no comment about whether the government would sign the agreement that would allow the university to remain in Budapest and issue US-accredited degrees.

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