SAN JUAN, Puerto Rico—The University of Puerto Rico says it will eliminate an $800 fee that had sparked violent protests two years ago and led to the resignation of the institution's president.

The Board of Directors announced Saturday that the annual fee would be eliminated in July.

Board members said they made their decision based on a pledge by the island's new governor to increase revenues for the U.S. territory's largest public university.

The fee was created to offset a budget deficit. It led to large-scale student protests and clashes with police on campus.