The government had identified a list of "strategic subjects"
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Universities have persuaded the government no immediate action is needed over courses that might be at risk of being axed.
Concerns were expressed last year after several high-profile course closures.
But the Higher Education Funding Council for England reported the sector was generally "healthy and vibrant".
Education Secretary Ruth Kelly has now said she respects universities' autonomy - but wants a continuing watch to protect the national interest.
Student demand
The funding council's report, delivered in June, said subjects which were struggling to attract students would have to be taught in larger, national centres.
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ORIGINAL PROTECTION LIST
Arabic, Turkish and Middle-East studies
Asian and former USSR country studies
Japanese, Chinese, Mandarin and other far-eastern languages
Science, technology, engineering and maths
Vocationally oriented courses, especially for technology and creative/cultural industries
Courses relating to EU accession states, particularly eastern Europe and Baltic
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But it warned against "moral panic" and rejected the need for government intervention.
In her formal reply, Ms Kelly said she broadly accepted this.
She said the priority should be to stimulate student demand.
She valued the way individual institutions focused on their own "missions".
But she urged them to discuss, early on, subjects which might be vulnerable so they could minimise any disruption for students.
'National consequences'
She recognised that universities were free to decide what to teach, or stop teaching.
But she added: "I am also conscious of national expectations and the potential national consequences of individual decisions.
"So I hope you will continue to monitor whether there are areas where current provision seems out of step with the national need; consider whether action is needed; and if so, advise me on what might be done, and who is best placed to do it."
Ms Kelly welcomed recent reports that a dozen institutions had held talks, hosted by the Open University, about possible collaboration to protect "strategic but vulnerable" subjects.
"That is exactly the sort of 'bottom up' innovative approach to finding solutions I want you to encourage and incentivise," she told the funding council.