The statement came as Green and socialist members of the Students Representative Council stayed away from a meeting on Wednesday night where a motion countering pro-BDS moves was expected, denying the meeting a quorum so no business could take place.
The statement acknowledged "lots of comments and questions about the Students Representative Council's motion to support the boycott of Israeli university Technion . . . The University of Sydney does not support the SRC motion nor the proposal originally put by Associate Professor Jake Lynch."
The statement quotes vice-chancellor Michael Spence as saying: "I do not consider it appropriate for the university to boycott academic institutions in a country with which Australia has diplomatic relations. Should the Australian government suspend diplomatic relations with Israel or request the university to suspend its institutional relationships with Israeli universities, then the question should be revisited.
"The vice-chancellor's position has not changed and has been endorsed by the university's senate."
It says Professor Lynch is entitled to his views, but adds: "The University of Sydney does not consider the Boycott, Divestment and Sanctions policy appropriate and it is not (university policy).
The SRC did not respond to requests for comment. Australasian Union of Jewish Students political affairs director Dean Sherr said that only 13 of 33 SRC members attended Wednesday's meeting.
"This is a demoralising defeat for BDS activists that could not show up to defend their beliefs to actual scrutiny," he said.
Mr Sherr said the best way of promoting peace in the Middle East was to support positive initiatives for co-existence and harmony, including co-operative research between Jewish and Arab staff and students at Technion.