Plans to raise the maximum level for tuition fees from £9,000 to £9,295 in Wales have been scrapped, Education Secretary Kirsty Williams has said.
The income at which graduates will have to repay student loans will be raised from £21,000 to £25,000, she added.
It comes after the UK government pledged to freeze the maximum fees in England at £9,250.
Ms Williams told AMs the announcement had caused "turmoil" in England, but one Tory AM accused her of a U-turn.
If the Welsh Government's tuition fee rise had gone ahead, the maximum level would have been higher than the top rate in England, but a freeze in fees could leave universities with less money than they would have expected.