The University of Wales, Cardiff, which rose 20 places in The THES research assessment rankings this year, is set to receive degree-awarding powers from the Privy Council next year.
The powers will give Cardiff the option of acting independently from the Federal University of Wales, of which it is a constituent college. But vice chancellor Brian Smith said: "We will not necessarily use those powers."
Earlier this year the Federal University granted more autonomy to its eight constituent colleges. "Newer members of the University of Wales already have degree-awarding powers," he said.
"So to present ourselves as an independent university internationally, we also need to have these powers."
Cardiff came 15th in The THES league table following the announcement of the RAE results.
When Professor Smith became vice chancellor three years ago he set out to achieve the ambition of his predecessor, Sir Aubrey Trotman-Dickenson, of becoming one of the top 12 research universities in Britain by the 2003.
He closed and merged departments and recruited 40 more professors and 70 new lecturers. To boost the university's international dimension, a quarter of the new staff came from overseas.
This year 23 departments out of a total of 29 achieved grades 4 and 5. In 1988 only six departments did so and in 1992 the number was 11, ranking Cardiff 35th in the table.
In the mid-1980s the former University College, Cardiff, was threatened with bankruptcy and had to be rescued by a merger with the then University of Wales Institute of Science and Technology.