First Nations University of Canada is scrambling after losing $1M in revenue. (CBC)

The First Nations University of Canada is scrambling after a major tenant has announced it won't be renewing its lease.

Last week, Aboriginal Affairs informed the university it will no longer be leasing space from its main campus in Regina.

"I am disappointed in the federal government in doing that," said university governor David Sharpe. "I lobbied hard. I went to Ottawa with (acting university president Juliano Tupone). I pushed the government, do not hurt this university." 

The lost revenue is around five per cent of the university's $20 million budget.

The university is now looking for new tenants.

"We aren't sitting on our hands," said Sharpe, "we've been meeting with other groups that would have nice synergies with the university."

The news came out when university officials addressed the Federation of Saskatchewan Indian Nations assembly Thursday afternoon.

Chiefs voted to extend the terms of the university's board of governors, despite concerns the university isn't hiring enough First Nations people.