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Oxford University has declined an international classification of the world’s best universities, which also revealed the progress of academic institutions in Asia, soon to be a challenge to the Ivy League and Oxbridge.

Oxford fell from fourth to fifth place with Imperial College London in the QS / Times Higher Education rankings, released today, the widening gap with those in Cambridge who rated second in the world. University College London (UCL) jumped Oxford next quarter after Yale, Cambridge and Harvard.

Overall, the UK still blows above its weight, second only to the U.S.. There are four of the 10 slots and 18 in the top 100. But there has been a significant drop in the number of North American universities in the top 100, 42 in 2008 to 36 in 2009. The number of universities in Asia in the top 100 increased from 14 to 16. University of Tokyo, at 22, is the highest ranking of the University of Asia, ahead of the University of Hong Kong at 24.

Major Universities UK said institutions in Japan, South Korea and Hong Kong “hot pursuit” of Western institutions saying they needed more funds to compete on the world stage.

Earlier this week, the outgoing vice chancellor of Oxford, warned that the university needs more than £ 1bn investment over the next decade to “not fit for purpose” facilities to a world-class quality. John Hood, said the university was the budget to make a loss for the fourth consecutive year.

“From a financial perspective that these are really worrying,” he said. “Government budgets are very stressed and equipment are very volatile, as are the markets for our business.” Oxford yesterday expressed surprise at his fall from the table. A spokesman said: “Placement of the league table can vary as they often use different methods to measure success, but the position of the University of Oxford Oxford is surprising given that … is first in each table national league.

The rankings are based on a survey of 9,000 international academics, how influential the institution’s research and quality measures of education and the ability to hire staff and students abroad.

Wendy Piatt, director general of the Russell Group of Universities, said: “The overall message of these tables is clear – the leading research universities in the UK are held in high esteem internationally, but countries like China and Korea, are investing heavily in their best institutions are heels.

“The accuracy of classification tables like this can be debated, but certainly a warning alarm that our success is at risk if we as a nation do not take measures against such fierce competition.

He added that the UK was less resources than its competitors and, by reducing public spending budgets hit they would be under increasing pressure. Universities are calling for better funding in the next revision of the student finance system, to be launched by the government within weeks. Increasingly, calls for fees to be increased to safeguard the quality of their teaching.

The rates of the league table of teaching quality according to the ratio staff / student. A recent report by the Higher Education Funding Council for England suggested some students were struggling to get enough contact time with tutors.

Phil Baty, deputy editor of the Times Higher Education magazine published tables, said: “Oxford comes out with a perfect score on the reputation of staff appointments, but have fallen slightly, while the UCL has improved dramatically. It is very tight on top of a relatively small change can move the pecking order. Spending on higher education in Asia is phenomenal and that’s why we see their results is increasing. ”