Universities Scotland, which represents principals, believes the cultural and social contribution of foreign students is just as valuable as the economic one.
Previous studies have shown overseas students are worth an estimated £337 million every year in fees and some £441 million in wider expenditure.
The report, entitled Richer for It, says home students also benefit from studying alongside counterparts from across the globe, giving them an international outlook invaluable for business.
International students also result in a vast network of alumni around the world who maintain strong connections to Scotland.
The report, which will be presented to MPs at Westminster, comes as UK immigration policy threatens to restrict the stream of overseas students.
Chair of Universities Scotland's International Committee and principal of Aberdeen University Professor Sir Ian Diamond said: "Scottish universities have a very strong record of attracting international students and have the world-leading teaching and research credentials needed to compete successfully in a fiercely competitive and truly global recruitment environment.
"The true value of international students is much greater than can be quantified in monetary terms alone.
"The social, cultural and educational benefits gained from having international students study and live with us are immense."