U.S. State Department said on Monday it was disappointed that Central European University (CEU) could not continue its U.S.-accredited programs in Hungary.

The U.S. government was disappointed that the Hungarian government and CEU failed to reach the agreement that would allow the university to continue its U.S.-accredited programs in Hungary, according to a statement issued by the State Department.

"Since the Hungarian government amended its law on higher education in April 2017, we have worked diligently with both parties to find a solution that would allow CEU to preserve these programs in Hungary," said State Department spokesperson Heather Nauert in a statement.

CEU, founded by Hungarian-American businessman George Soros, said on Monday it was forced to announce that it would launch all U.S.-accredited degree programs in Vienna in September 2019, according to the official website of CEU.

"The departure of these U.S.-accredited programs from Hungary will be a loss for the CEU community, for the United States, and for Hungary," Nauert said.

CEU's departure was reportedly the reflection of conflict between Hungarian Prime Minister Viktor Orban and George Soros.

The Hungarian government accused Soros of interference in domestic affairs through non-governmental organizations (NGOs) funded by the billionaire, according to media reports.

Last week, U.S. State Department said it was disappointed in Hungary's recent decision to extradite two suspected Russian arms dealers required by the U.S. side to Russia.

A spokesman for the Hungarian government was quoted by Reuters as saying that his country made the extradition decision based on international laws.

He also noted that Washington had rejected eight of nine extradition requests from the European nation in the past five years.