The New York Institute of Technology (NYIT) will cease teaching in January, after being told not to admit new students in 2010.
Seventy-three students who remain on its books are due to finish their studies by the time it closes.
However, seven will have to continue their education elsewhere because they will have incomplete degrees.
Meanwhile, 200 former graduates are being advised to collect any outstanding certification before the university closes for good.
The university has moved out of its main campus in Adliya and relocated to the sixth floor of the Al Raya Building, in the Seef District.
"When we announced the phase-out of the university, we had about 1,000 students that still needed to graduate and by the end of this final semester, we will only have seven students left with pending courses," said NYIT campus dean and local president Dr Suzanne White during a Press conference yesterday.
"It is a sad time to be leaving - especially since the Higher Education Council (HEC) has made immense changes following the decision to phase out.
"The university possibly would not have left had these changes been made earlier."
She said the seven students who would be unable to graduate had been given the option of continuing their education at NYIT campuses in either Abu Dhabi or New York at no extra charge.
She also stressed that there would be no problem with certificate accreditation.
In 2009, NYIT was ordered to stop admitting new students into its business school, but in 2010, was banned from enrolling students in any section.
In 2011, NYIT made the decision to close down because it was unable to sustain itself  without admitting new students, as it still had to pay staff salaries and rent.
The staff has been radically downsized from 180 in 2011 to just 36 who remain, said Dr White.
She added that 11 of the remaining staff were expected to leave the country when the university closes, while the rest were likely to seek other positions in Bahrain.
Meanwhile, she also said the NYIT administration had not ruled out the possibility of returning to Bahrain in future.
"We would like to keep the doors open," said Dr White.
"The university may be gone, but our 2,500 alumni will be here and we will still have them coming in for alumni events."
Dr White explained the university was not allowed to admit new students after a review by the National Authority of Qualifications and Quality Assurance for Education and Training (NAQQAET).
"The NAQQAET gave us a poor review despite the accreditation that was given to us from bodies that came from the US, who gave us a good review," she said.