A large banner with a strong message hangs in the main entry of First Nations University of Canada's Regina campus. Meetings of officials took place Tuesday with a working group established to find solutions to the school's troubles. (CBC)

A working group has two weeks to formulate plans for what officials are saying would be a new "more robust" relationship between the University of Regina and the troubled First Nations University of Canada.

The latter is on the brink of folding as roughly half of its budget, some $12 million, is set to be eliminated April 1.

"A stronger relationship," Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations — which currently controls FNUC — said Tuesday night after meetings in Regina. "A more robust relationship with University of Regina and First Nations University of Canada."

Lonechild was in Regina to meet Rob Norris, the provincial minister of Advanced Education, Employment and Labour, as well as Vianne Timmons, president of the U of R and representatives from the federal government, FNUC faculty and students.

Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations, said Tuesday he was optimistic solutions could be found for the troubled FNUC. (CBC)

Timmons, Lonechild and Norris emerged to say that a working group had been established and given two weeks to work out solutions.

"We have agreed to establish a working group, immediately to, with participation from all parties, ... work on developing short-term, mid-term and long-term arrangements that would lead to a new type of partnership," Timmons said.

She said that a maximum of two people each, from FNUC, FSIN, U of R, and the two levels of government, would be on the group.

"We have to figure out a way to bring stability to the situation," Timmons said. "We also have to look at some healing ... for faculty, staff and students."

Lonechild said he felt optimistic following the discussions.

"We need to come up with some solutions," he added.

"The primary element here is increased accountability," Norris said. "Here's what's clear: There will be no provincial funds going to the First Nations University of Canada for the foreseeable future."

Norris said one option is to have provincial money for First Nations education go to the University of Regina in an arrangement he characterized as a "stewardship".

"That sense of stewardship ... my sense is that it's appropriate and at the same time very respectful," Norris said.

Lonechild said he was not bothered that First Nations were losing control over the operations of the school.

"I'm a firm believer that no one's ever really in control," Lonechild said. "Our Creator's in control."

Saskatchewan announced Feb. 3 that provincial funding for FNUC, about $5.2 million annually, would not continue effective April 1. The federal government followed suit Feb. 8, cutting off about $7.3 million, also effective April 1.

Both governments said they had lost confidence in the administration of the university.

Since 2005, the school has experienced internal turmoil, including the firing or departure of numerous senior officials, allegations of financial irregularities and accusations that academic freedom is under attack.

"We understand the sense of urgency," Timmons said Tuesday. "We're committed to get some resolution to the issues that have been presented."

Timmons said the working group would present its ideas to the provincial and federal governments and the FSIN.