Thousands of university students face disruption this term with the threat of a walkout by lecturers.

Unions are meeting with university employers today to try to thrash out a deal to end a dispute over pay.

If the talks break down it could lead to students being left with coursework unmarked, lectures and seminars cancelled and their exam programmes thrown into chaos.

Staff at the universities of Sussex, Brighton and Chichester will be watching developments at the talks in London today closely.

The Association of University Teachers (AUT) and the National Association of Teachers of Further and Higher Education (NATFHE) are arguing that vice-chancellors have reneged on a public promise to put at least a third of the money derived from the new funding regime, including the controversial top-up fees, back into sorting out staff pay.

In April 2004, the then minister for higher education, Alan Johnson, said that university vice-chancellors, lobbying for the introduction of top-up fees, had cited low academic pay as one of the reasons for introducing top-up fees.

He said vice-chancellors had told him that at least a third of the income from fees and extra grants would be put back into the salaries and conditions of the staff.

If the employers fail to deliver on that promise, staff at universities across the country will be asked to back industrial action including a one-day strike at the start of March, followed by an assessment boycott.

The boycott would involve no marking or setting of coursework and a refusal to get involved in exam preparation.

AUT general secretary Sally Hunt said: "University staff have been continually let down over pay.

"We have heard the promises of extra cash, followed by the excuses of there not being enough money.

"This time round we know the money is there - money we were promised when the vice-chancellors were lobbying in favour of top-up fees.

"We have no desire to disrupt the studies of hard-working students, but if the employers do not keep their word we will be left with little choice."

Paul Mackney, NATFHE general secretary, said:

"Students deserve professional staff paid professional rates.

"If the Government wants 21st century universities, universities must pay accordingly.

The money is now available and it's time to top-up university pay."

Professor Alasdair Smith, vice-chancellor of the University of Sussex, said: "A significant proportion of top-up fees, which the university will receive from 2006 onwards, will indeed go into staff pay and conditions.

"However, this does not mean we have a large amount of money available simply to increase basic rates of pay across the board."