Education Minister Hekia Parata has confirmed that a special needs residential girls school in Nelson will remain open.
In 2012, the High Court ruled that the Government's decision to close Salisbury School was unlawful.
At the time, Ms Parata said she would not challenge the ruling and the school would remain open for 2013.
Helen McDonnell, the head of Salisbury School's board of trustees, said Ms Parata confirmed that the school would stay open with no time limit when she paid a visit on Tuesday.
Ms McDonnell said teachers, parents and students were thrilled to get certainty about its future.
The Green Party said it is welcome news, but it deplores the unnecessary fear and stress that staff and families have been put through.
Listen to Helen McDonnell