OXFORD University has said will no longer accept research grants and funding donations from a Chinese firm, until further notice.

The institution has moved to sever links with Huawei amid growing security concerns about the firm’s telecommunication technology.

It has denied accusations its equipment could be used for spying.

Two projects with links to the company, worth £692,000, will go ahead as planned.

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A statement said: "Oxford University decided on January 8 this year that it will not pursue new funding opportunities with Huawei Technologies Co Ltd or its related group companies at present.

“Huawei has been notified of the decision which the university will keep under review. The decision applies both to the funding of research contracts and of philanthropic donations.

“The decision has been taken in the light of public concerns raised in recent months surrounding UK partnerships with Huawei. We hope these matters can be resolved shortly and note Huawei’s own willingness to reassure governments about its role and activities.

“The university will continue with existing research contracts where funding from Huawei has already been received or committed. We currently have two such ongoing projects, with a combined funding from Huawei of £692k. Both projects were approved under the university’s regulatory processes before the current levels of uncertainty arose.”