For years the British have been infamous for refusing to speak any foreign language abroad other than the equivalent for: "Do you speak English?"

Now researchers have found this hostility towards experimenting with non-native tongues has led to fewer students studying in other European countries as part of their degrees.

More are opting for universities in the United States, Australia and New Zealand, according to a Government-commissioned report.

And while many students still want to study abroad, they say lack of cash often prevents them from doing so, researchers from Sussex University found.

In their survey on foreign language learning, only Spanish - seen as "sexy" - proved popular with students, with French and German both being a turn-off because they were too difficult.

The cost of tuition fees was an added disincentive, indicated the report, conducted by the Sussex Centre for Migration Research and Dundee's Centre for Applied Population Research.

It was commissioned for various bodies, including the Department for Education and Skills and the university funding councils in England, Scotland and Wales.

The report claims that, among academics, "the general feeling was one of exasperation, but also resignation, about the foreign languages scenario in the UK".

Academics said the Government's decision to make languages optional at GCSE level would make things worse, although they welcomed the decision to introduce them in primary schools in England.

The report states: "The problem of UK students' generally poor and declining knowledge of foreign languages came up again and again."

Falling GCSE and A-Level entries and the "downgrading of languages in the secondary school curriculum" formed the backdrop to this, it said.

This fuelled the rise in interest in going to study in America and other English-speaking countries, instead of Europe.

One head of a university department said: "There has been a wind-down of languages ... and therefore those having the linguistic skills to be able to go abroad to study."

Only Spanish among the European languages bucked the trend, he said, because students saw it as "sexy - flamenco dancing, tapas bars etc ... also many go on holiday there and are influenced by what they find".

The report urges universities to put the same kind of effort into exchange programmes for British students as they do into attracting lucrative full-fee payers from outside the EU.

The main recommendation is the "urgent" need to improve foreign language teaching in schools.

The researchers took evidence from 80 universities and 1,200 students and looked at statistics showing the decline of foreign language learning in recent years.

The report found about a third of the final-year undergraduates who took part in the survey had either studied or worked abroad during their degrees.

France was the most popular country for those polled, being the destination of 44 per cent.

Nine out of ten said they were at least satisfied with their experience, saying it helped them develop as people and would enable them to work abroad.

Money and being away from boyfriends or girlfriends were their main worries.

Language barriers came third, followed by being far away from the parental home.

Of those who stayed in the UK, almost 80 per cent said cash was an important factor in their decision. Poor language skills were mentioned by 66 per cent.

One geography student told the researchers: "I think it's probably to do with confidence.

"You talk to European students here and they've all done numerous languages at school from a very early age, whereas you look at our schooling system and languages are not that important."

Four out of ten final-year students regretted not going abroad, the research showed.

Those who did generally had a clearer view of what they wanted to do in their careers, which often involved planning to leave the UK altogether.