In a statement, Kevin Argent, the university’s executive director of estates and facilities, said the decision followed “careful consideration and consultation”.
The university said plans to redevelop its Wessex Lane campus would deliver more than 1,000 new student beds, helping meet demand for accommodation.
It previously said its plans for Avenue Campus aimed to maximise its land to provide students with high-quality, sustainable and secure accommodation.
The proposals, which featured townhouse-style buildings, had already been revised last year following resident, staff and student feedback during an initial consultation.
Roger Brown, chairman of Highfield Residents’ Association (HRA), said he was “delighted” at the university’s decision.
But he said it highlighted the need for the council to “have a policy regarding the proliferation of purpose-built student accommodation across the city”.