Australian National University (ANU) vice-chancellor Ian Chubb says improving the institution for its own sake is more rewarding than winning a favourable world ranking.

ANU on Thursday dropped one place to number 17 in an authoritative annual list of the world's top 200 universities.

It now sits between Stanford University in the US and Canada's McGill University in The Times (UK) list.

The result also ensured ANU maintained its position as the highest ranked institution outside Britain and America for the second year running, ahead of rivals ETH Zurich in Switzerland and the University of Tokyo.

While he welcomed the news, Professor Chubb said he wasn't overly concerned with the university's standing in the list.

"I don't mind being next door to Stanford and near Tokyo and ETH Zurich, I'm happy to be around those sort of universities," he told AAP.

"When you look at the 16 in front of you and you look at how they're supported, there is not a lot of room for us to move into."

Professor Chubb said he was focussed on improving the university for its own sake.

"Our driver here is to look at ourselves constantly, review what we do regularly, identify how we can improve often and then act on it," he said.

"As we get better at what we do, the rankings will look after themselves."

But Professor Chubb said the rankings couldn't be ignored entirely as they helped ANU grow its burgeoning international student sector.

"If you go into Asia for example, I talk to my colleagues there and talk to students there, they are very aware of where ANU sits in these rankings," he said.

"All of the messages that go out, including these sort of rankings, contribute to that demand and of course that also feeds back into your performance."

The ANU was joined by the nation's seven other leading research universities in the top 100.

University of Sydney and Melbourne tied at 36, followed by Queensland University (41), Monash University (45) and the University of NSW (47).

Adelaide University (81) and the University of Western Australia (84) rounded out the nation's top performing institutions.

The results come as a review of Australia's $15.5 billion international student industry is being carried out by former federal Liberal MP Bruce Baird.

The federal government commissioned Mr Baird's services following a series of attacks on Indian students in Melbourne earlier this year and claims others were being exploited by dodgy education providers.

Acting Education Minister Mark Arbib said The Times rankings proved Australia's education system was world-class.

"That's why our international education sector continues to grow, attracting students to Australia with our combination of a quality education and a safe and enjoyable place to study,"he said.

American ivy league establishment Harvard once again claimed the world number ranking, while its east coast rival Yale was relegated to third this year after being edged out by English stalwart Cambridge.

（www.eduwo.com, Anna）