The news that Cardiff Metropolitan University will not be disolved against its wishes was welcomed by all parties.
Education Minister Leighton Andrews made the announcement on 6 November 2012.
The University of Wales Newport and University of Glamorgan have however agreed to a merger and the minister explained that Welsh government would work with them to ensure a smooth transition.
"Both institutions wish to merge with effect from April next year.
"The Chairs of Newport and Glamorgan have made clear their preference to now establish the new university by way of the voluntary dissolution of the University of Wales, Newport Higher Education Corporation, and the transfer of its assets and liabilities to the University of Glamorgan Higher Education Corporation," Mr Andrews told AMs.
Plaid Cymru Education Spokesperson Simon Thomas AM expressed his delight that the situation had been reached through a volunteer merger rather than a forced merger.
He also took the opportunity to remind the chamber that it was his party's policy to have one higher education institution in south east Wales.
Angela Burns AM and conservative education spokesperson called on the minister to build bridges with Cardiff Metropolitan University "to get the three of them talking together to ensure that collaboration does reign".
Speaking on behalf of the Liberal Democrats, Mick Antoniw AM congratulated Newport and Glamorgan universities for the steps that they have taken to reach an agreement.
He also voiced his disappointment that Cardiff Met were not on board as he described it as a "tremendous lost opportunity for them".
Read this in Welsh.