City University of Macau came into being as a result of the reform and change of name of the Asia International Open University (Macau). Its operation model is based on other outstanding experience of international education institutes including Universidade Aberta Open University of Portugal, the Open University of the United Kingdom, German Open University, Budapest University of Technology and Economics, Sapienza Universita di Roma (one of the largest public universities in Italy) and the Open University jointly established by this University with a northern Italian Industrial Group. The City University of Macau is the fruit of cooperation with the Portuguese National Open University, and joined in the International Open and Distance Education Association and the World Lusophone University Association when it was established.

Distance Education or Distance Learning refers to an educational model using multi-media such as television and network of learning, which is different from conventional model requiring classroom-based learning. Therefore, classes can be conducted at anytime and anywhere, making learning extremely convenient to working adults who want to continue their education and life long learning. Students can learn through multi-media channels such as television, broadcast, internet, counseling, correspondence and face to face contacts.

In order to extend the quality distance learning system of the University, the Asia International Open University (Macau) changed its name to International Open Institute (Macau) (IOI) incorporated with its distance learning and teaching system.