First Nations University of Canada has its main campus in Regina, next door to the University of Regina's main campus. FNUC has satellite campuses in Saskatoon and Prince Albert. (CBC)

A plan that would see troubled First Nations University of Canada give up control of its finances and receive money through another university has been approved by Saskatchewan chiefs.

Chiefs meeting in Saskatoon agreed that a shared management plan, where finances would flow through the University of Regina, was preferable to letting FNUC close its doors.

Regina-based FNUC has been reeling since the federal and provincial governments announced earlier this year they were slashing funding because problems at the university related to spending and governance weren't being fixed fast enough.

Amid concerns FNUC was headed for collapse, some top administrators were put on leave and an interim board of governors was appointed.

The chiefs' proposal, recommended by FNUC's interim board, would allow the FNUC to remain intact as a First Nations-controlled academic institution.

About 820 students attend FNUC at its main campus in Regina and at satellite campuses in Saskatoon and Prince Albert.

Plan still tentative

The proposal notes that the U of R does not want to take over FNUC. Now that the chiefs have given their approval to the shared management plan, it's expected the province and the U of R will decide whether to proceed.

What's still up in the air, however, is how FNUC will survive after losing 45 per cent of its budget.

In its report to the chiefs, the interim board said it urgently needs to ask the federal Indian and Northern Affairs Department to release $1 million, "with an expectation of receipt of funds within 48 hours."

If it doesn't get the money, FNUC could be insolvent by the end of March, the board of governors report said.

The two-day special assembly of the Federation of Saskatchewan Indian Nations ends Tuesday.