Universities are calling for the Scottish Executive to waive tuition fees for the children of asylum seekers after it was revealed a small number of students are already being offered degree places.

Last night there were warnings that the controversial move to allow the most academically gifted to pursue their studies beyond school could act as incentive for people wanting to come into the UK illegally.

Currently, because children of asylum seekers are treated as overseas students if they apply to higher education, they face paying thousands of pounds in fees. Scottish students have their fees paid for them.

What makes the situation even more difficult is that asylum seekers cannot legally work to pay for their studies under UK government rules. Asylum seekers are similarly restricted in taking up university education in England and Wales.

However, some Scots universities already run small-scale initiatives to scrap fees and provide bursaries for a limited number of high-achieving asylum seekers.

Now Universities Scotland believes it is time for the executive to enable all those who could benefit from a university education to do so.

Careers Scotland figures show there are currently 17 asylum seeking school leavers who have been offered a place at a Scottish university in 2007-08, but only three or four will get a place depending on the goodwill of the institutions involved.

A spokesman for Universities Scotland, which represents university principals, said: "We will ask the executive to consider that children of asylum seekers who attend Scottish secondary schools get the same rights as Scottish domiciled students.

"There is an anomaly because if they want to go to university they have to pay overseas students fees, but if they want to attend a further education college course part-time they are considered as home students and get the appropriate support.

"Anyone who has seen the enthusiasm and commitment of these talented children in the Scottish school system will be in no doubt what an asset they could be to Scotland."

However, Murdo Fraser, education and lifelong learning spokesman for the Scottish Conservative Party, cautioned against the move.

"There is a very delicate balancing act of providing opportunity to those who want to make an economic contribution to the country, but on the other hand we don't want a situation where there is an incentive to those coming into the country illegally to access free education.

"Universities are private institutions and can do what they like, but a change in government policy has much wider implications."

Simon Hodgson, head of policy and communications at the Scottish Refugee Council, backed the call by Universities Scotland.

"If you can't work then you cannot save money and any payment of fees becomes hugely problematic. We have a lot of children who have done very well at school, but then cannot go on to the next stage and it is very frustrating for them," he said. There was also support from Imelda Devlin, access co-ordinator from Strathclyde University, who oversees the institution's bursary scheme which - along with similar schemes at the universities or Glasgow, Paisley and Glasgow Caledonian - allows one talented asylum seeker a place every year.

"These children are integrated enough into the Scottish system to come out with excellent Highers results and then they come up against this barrier," she said.

"They are often the top performers in their school, but that is where it has to stop because the funding doesn't allow them to go any further. We would support any move to make this more available."