In October, prior to the COVID-19 pandemic's effect on its revenue, the university began an external review of the School of Communications and Creative Industries.

It is understood the draft included plans to move the faculty away from Wagga, and consolidate its offerings in Bathurst.

Wagga mayor Greg Conkey said he was concerned about what would happen to the Riverina Playhouse if the university no longer offered students creative courses at the Wagga campus.

"We've got a strong creative arts scene in Wagga, and especially with the Playhouse, we believe there should still be a mix of courses offered at the Wagga campus," Councillor Conkey said.

"The Playhouse is a great facility, I've been to many events there.

"It seats 200 or so, which is a perfect size for plays and events and of course it is fully used at the moment by the university."

Between late 2017 and September 2018, Charles Sturt University completed a $3.5 million refurbishment on the 1986-built structure on Cross Street, near the river.

"[Its fate] would be up in the air if Wagga had no creative courses," Councillor Conkey said.

"We won't be looking to close it, but we have to ask what would happen to it if the uni had no use for it."

The plan that was proposed to council would see Wagga's university campus become a hub of agricultural studies while Bathurst took on the creative arts and industries.

"The university came to council with a discussion paper, and at that point, they assured us nothing was concrete, nothing had been decided and nothing would be happening overnight or without consultation," Cr Conkey said.

Since the global pandemic hit, the university has had to re-establish its financial footing entirely, and a spokesperson for the university indicated the previous plan has been placed on hold for the time being.

To make up for its $49.5 million virus-induced deficit, the university announced last week that it will look to cut up to 600 courses from its statewide offerings.

Up to 110 administrative positions have also been slated for redundancies, with more job cuts expected to come.

While reviewing its 4751 subject offerings, the university's spokesperson said no final decisions will be made on the fate of the Playhouse, or Wagga campus's School of Communications and Creative Industries.

"We have not made decisions yet on any changes to any courses," the spokesperson said.

"We are asking our faculty staff for feedback first so we can build our course profile together."

But while the unfolding situation continues, the spokesperson said the university "cannot provide an answer" to whether the Playhouse will have to be sold off in the near future.

Instead, the spokesperson said a decision would be made after "the review of our course profile and operations is completed, and we have a thorough understanding of the impacts in all areas."