A new university is to be set up in Galilee, and the Hollywood-based Israeli producer, Arnon Milchen, has pledged $100 million for its establishment.

This was announced yesterday by Vice Premier Shimon Peres at a joint news conference with Education Minister Limor Livnat and Finance Minister Benjamin Netanyahu. Peres said the university would strengthen educational and employment possibilities in the north of the country, just as Ben-Gurion University helped to develop the Negev.

For several years the idea has been suggested to set up a new university by combining the campuses of various academic colleges in the Galilee, but it did not come to fruition for lack of funding. Yesterday Netanyahu thanked Milchen and said the treasury would do its part to help the project.

Livnat said six campuses - the ORT Braude College in Carmiel, the Emek Hayarden College, the Tel-Hai Academic College, the Emek Yezreel College, the Ohalo College at Katzrin and the Safed College - would form the basis of the university whose headquarters will be in Carmiel. The colleges will cut down on the variety of subjects that they now offer and specialize in certain fields for bachelor's degrees. The campus at Carmiel will offer master's degrees and doctorates and will have research facilities.

Prof. Motti Shechter, president of Tel-Hai, said that several college heads had come together to set up the university. He said it would cut down on duplication and that it would also offer medical studies.

Dr. Shmariyahu Rosner, president of ORT, said that the new university would mean "a breakthrough for the future of the Galilee, which has long lacked national recognition."