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.
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.
The site is used as a meeting place for the 75 members of the university’s Pagan Society, whose members have said the damage is “heart-breaking”.
Former and current members of the student group have called for the vandals to be caught and punished.
The Lampeter Pagan Society Facebook page has been bombarded with messages of support describing the vandalism as “disgusting” and “saddening”.
The group now hopes to secure funding for a complete rebuild at the current site to improve access and security, or to move to a new location.
Talks between the society, the university and the Students’Union are ongoing.
Cen Powell, the University’s Executive Head of Estates and Facilities said that it is working with the Students’ Union to “assess options” to find a new site for the Pagan Society to use.
A Dyfed-Powys Police spokesman confirmed it is investigating the incident although no suspects have as yet been identified.