Wiltshire College is one of just three colleges in the country ordered to improve by the Education Funding Agency after its standards for two-thirds of its 16 to 19-year-olds dropped below the minimum level.

Just 32 per cent of Wiltshire College’s students at Key Stage 5 met the academic minimum standard, according to figures released at the end of last month and based on 2011/12 results.

The college fell foul of new minimum standards for key stage five set by the government in April to identify poorly performing colleges.

The standards are based on average point scores for student results at A-level or vocational qualifications.

Only two other college in the country, South Thames and Kingston Maurward College, performed as badly. A spokesman for the Department for Education, which oversees the EFA, said: “We have written to Wiltshire College to make clear that we expect them to address the weaknesses that this measure has highlighted.

“In the event that these colleges are still below the standard next year, further action may be considered.”

That could mean a cut in funding or, in extreme cases, possible closure.

Its last two Ofsted inspections have graded it as satisfactory, which is level three out of four. The most recent inspection, last February, said it has the capacity to improve but said the college is tackling many of its issues.

The low Ofsted grading means it will be inspected again before the end of this year. The college has suffered major funding issues over the last three years after government cuts which prompted a restructuring programme and more than 100 job losses.

Principal Di Dale is on holiday but a college spokesman said: “The letter the college received was an advisory one, and we are awaiting further information from the EFA. It is a new process of measuring success and affects only 22 enrolments out of a total 13,000 across the college.

“The college is continuing to improve its success rates and overall success at Level 3. The figures are based on 2011/12 results and we have made significant progress since then.”