McGill University says it will offer a $3,000 annual award to new undergraduate students from other provinces to offset a tuition hike imposed by the provincial government.

The university says roughly 80 per cent of Canadian undergraduate students who apply to the university would be eligible for the award, beginning in the 2024-2025 school year.

The new Canada Award will be guaranteed for up to four years of study as the university tries to maintain enrollment in the face of the province's plan to increase tuition for out-of-province students to $12,000 per year from from $8,992.

McGill University president Deep Saini says in a statement that McGill's success is built on its ability to attract talent from Quebec, Canada and around the world, and he says the award will allow the institution to remain one of the top in the world.

Saini says the award will require the university to make some financial sacrifices but adds that out-of-province students are "part of our DNA."

The award will be for Canadian students studying in arts, agricultural and environmental sciences, music, education, architecture, nursing and most science programs.