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Bosses at a University of the Highlands and Islands (UHI) college say they are exploring a "range of strategic options" to safeguard its long-term stability and success.
UHI Perth has been dealing with a deficit of £2m, according to The Courier.
The college told BBC Scotland News it was operating within an increasingly challenging financial environment due to rising costs.
Alistair Wylie, interim chairman of UHI Perth's management board, said provision of higher and further education remained central to the institution's mission.
UHI is a network of colleges, specialist teaching centres and research institutes in the Highlands, Northern and Western Isles, Moray and Perthshire. It was awarded university status in 2011.
