A new school is likely to be built in the Hamilton suburb of Melville, replacing two existing schools.
It will be for years 7 to 13 and will replace Melville High School and Meville Intermediate.
Education Minister Chris Hipkins said he was satisfied building a new school was in the best interests of south-west Hamilton.
"After considering the schooling options in south-west Hamilton, I am satisfied that Melville High School and Melville Intermediate should close and a new school should be established to meet the needs of current and future young people in the area.
"I have written to Melville Intermediate and Melville High School boards, giving them 28 days to provide any final feedback. A formal decision will then be made.''
The high school's preference was to merge the two, but the intermediate and local iwi, Ngāti Wairere supported the establishment of a completely new school on a new site.
Development of the new school is expected to take several years and in the meantime the existing schools will stay open.