Two Fellows of Oxford University's Pembroke College have resigned, following allegations they offered students places in return for cash donations.

Student liaison officer the Rev John Platt and the college's chief fundraiser Mary-Jane Hilton are said to have given a clear indication to an undercover Sunday Times reporter posing as a wealthy banker that his son could expect preferential treatment in exchange for a £300,000 donation.

Mr Platt was also reported as saying there was a history of places being awarded on the back of donations. The college is among Oxford's poorest. The university issued a statement late last night confirming that the college had accepted the pair's resignation.

The Master of Pembroke, Giles Henderson, said: "The speed and decisiveness with which the college has acted on this serves to underline Pembroke's commitment to the selection of students being made solely on the basis of academic merit and potential."

He said neither Fellow had the authority to offer places at the college, and pledged that the admissions procedure would be reviewed.

The university's vice chancellor, Dr Colin Lucas, said he was "appalled" by the allegations.

"Such actions contravene all the principles on which our admissions policy is based," he said.

"I commend Pembroke College for its speedy and appropriate action in this case and its commitment to review its procedures for ensuring that all admissions decisions and business are conducted only by those authorised to do so.

"There must be only one criterion for winning a place at Oxford and that is individual excellence."

The revelations will embarrass the university, which was stung by accusations of elitism in the case of comprehensive school student Laura Spence, who was rejected by Magdalen College.

She went on to achieve five A grades at A-level and a place at Harvard University in the US.

Last December, Prof Valentine Cunningham, an English Fellow at Corpus Christi College, warned the practice of "buying" places was still firmly in place at the university. Fundraiser Philip Keevil resigned and withdrew a £100,000 donation after his son was turned down by Trinity College. Mr Keevil felt there should be a "slight bias" towards the children of donors.

Oxford West and Abingdon MP Dr Evan Harris called for the university authorities to take over the admissions process, so there was no chance of individual colleges being influenced by money.

The Sunday Times also approached three other colleges with the donation offer, but all turned the undercover reporter down.

Neither Mr Platt nor Ms Hilton were available for comment.