The market share of lucrative international students enjoyed by British and US universities has dropped sharply as Australia, Japan and New Zealand become increasingly popular destinations, according to an international comparison of education systems published on Tuesday.

The latest edition of Education at a Glance, an annual audit published by the Organisation for Economic Co-operation and Development, showed that although foreign students continue to be attracted to the two countries because of the English-language teaching and perceived quality of education, in relative terms their position is weakening.