The institute will shut the Birmingham branch of the Legal Practice Course (LPC) in 2002, making six staff redundant.
The news comes less than a month after rival LPC provider the College of Law launched its new £7m school in the region.
De Montfort recommended that students apply to the College of Law in the future, bypassing other Midlands LPC providers the University of Wolverhampton and
the University of Central England.
Rowland Hughes, director of the LPC at Wolverhampton, said: “We are being denied the opportunity to compete for these students. The link between the College of Law and De Montfort could create a perception in students that there is some form of conspiracy.”
The president of De Montfort's Student Union Stuart Hill slammed the university for not communicating properly. He said: “They need to let people know what they are doing in advance. I am disappointed by the way De Montfort deals with their students' careers.”
In July, the University of the West of England took over De Montfort's Bristol campus.