The site in Lampeter, south west Wales, which also includes an altar and fire pit has been damaged beyond repair.
The University of Lampeter is well-known for its theological courses and there is speculation that the attack could be religiously motivated.
The steps giving access to the site, in the grounds of the town’s Trinity Saint David University campus, were also torn apart.
Police believe that weapons, such as crow bars and pick axes, may have been used to deliberately cause as much damage to the area as possible.
Lampeter Pc Richard Marshall told town councillors at a meeting last week that the site had been “maliciously taken apart” and is now unsafe to use.
“It is disturbing,” he added. “This is a place of worship. If this was a church I’m sure we’d be hearing more about it.”
The pagan circle, which has been vandalised often in recent years, is also the subject of regular litter and debris clean-ups following impromptu parties by groups at the site.
This time, however, the damage was so extensive the temple and surrounding areas have had to be closed off amid health and safety fears.