Rockingham students will not be able to study for a degree at their local university campus from next year.
Murdoch University vice-chancellor Richard Higgott said the university had decided to shut down undergraduate programs at the satellite campus after an extensive review of its operations.
The campus started in 1996 with the aim of getting more people from low socioeconomic areas into university education.
This year Murdoch offered a suite of courses at Rockingham in teacher education, arts and tourism.
Professor Higgott said the Rockingham campus would take a "new strategic direction" by building on its existing research capability.
It would continue to offer university preparation courses to help prospective students develop the skills needed for tertiary study.
Professor Higgott said delivering all courses at Murdoch's South Street campus would benefit students through a vibrant campus life and better access to support and recreational facilities.
"The fact is, the majority of our students from the Rockingham area are actually studying at our South Street campus where there is a full range of courses on offer," he said.
"The demographic in Rockingham has changed greatly."