The Federal Government will abandon its controversial university reforms if they are watered down too severely by Senate crossbench demands.

Education Minister Christopher Pyne issued the warning to wavering senators on Wednesday, as well as pleading with Labor to come to the negotiating table.

• Senate defeats government’s university reforms
• ‘Round two’ for university deregulation
• Xenophon calls for university inquiry
• Lazarus tells Pyne: stop texting me

He will make a direct approach to Opposition Leader Bill Shorten seeking Labor involvement, after a former Hawke government education minister John Dawkins said allowing universities to set their own fees was a “small and unremarkable” reform.

Pyne tries for the third and presumably last time to push through uni changes. Photo: AAP

Mr Pyne denied his appeal to Mr Shorten was an admission he couldn’t get the crossbench numbers.

“I believe that we can come to a landing,” Mr Pyne said.

But while Mr Pyne said the government would consider every suggestion from the crossbench, it would not “adulterate” the reforms it hopes will clear parliament in February or March.

“If by the time we’ve considered their suggestions the deregulation of universities had been so watered down as to not be worth doing, then the government will not do it,” he said.

Prime Minister Tony Abbott has nominated university reforms as a major priority for his government after Labor, the Greens and independents knocked back the overhaul in the Senate.

Mr Pyne is now negotiating crossbench support for a refined package, which will scale back $1.9 billion in proposed funding cuts to universities.

Pyne lacks upper house support

It appears unlikely Mr Pyne will be able to garner the six votes needed to have legislation pass the upper house.

Senator Ricky Muir says he remains deeply concerned about the proposal, and called on the government to take the reforms to the next election.

The coalition has also lost the support of Liberal Democrat David Leyonhjelm, who said the revised package would end up costing taxpayers.

“There needs to be a substantial winding back of taxpayer funding of universities, in conjunction with the deregulation of fees, and I don’t see that happening,” he said.

Similar concerns are held by Family First’s Bob Day.

The Palmer United Party and independent Jacqui Lambie have already spoken out against the new package, while Nick Xenophon is demanding further changes to the deregulation plan.

Mr Dawkins, who created the current fee system, urged Labor not to lock itself out of the negotiating process.

However, his intervention did not mean he supported the government’s proposal.

Acting Opposition Leader Penny Wong said deregulation would make it harder for ordinary Australians to get a degree, indicating Labor would ignore Mr Pyne’s olive branch.

“(Mr Pyne) wants to make higher education less accessible, and that’s not something Labor is going to support,” Ms Wong said.