The London Metropolitan University had "seriously breached" their visa licence privileges, the immigration minister Damian Green told BBC Radio 4's Today programme.
Mr Green said: "London Met was seriously deficient as a sponsor and could not remain in this way."
He added that the university had "failed" in three major areas of their 'Highly Trusted Status' including that more than a quarter of students did not have "leave of remain".
Should a university lose its licence to admit non-EU students? The Home Office says London Metropolitan had the chance to put things right.
More than 2,000 foreign students could face deportation from the UK after the Government stripped a university of its visa licence.