More than 6,000 new masters and PhD places in the arts and humanities will be created over the next five years.
The Arts and Humanities Research Council has announced two new mechanisms for allocating £199 million of postgraduate funding.
Under the block grant partnership scheme, research-intensive organisations can allocate awards to five annual cohorts of PhD students, via a scheme intended to allow institutions greater freedom in selecting the best students themselves.
Meanwhile, through its annual studentship competition, the AHRC will fund postgraduate research and training in other institutions with pockets of research excellence.
Philip Esler, AHRC chief executive, said: "These new postgraduate funding mechanisms will ensure that new top-quality researchers will proceed into UK academic posts, where they will build on world-leading arts and humanities research."
A list of universities awarded block grants will be posted on the AHRC website shortly.