The principal of Te Aute Māori boys' college near Napier wants the Ministry of Education and the Anglican Church to follow the lead of iwi to move the school into the future.
The boarding school will receive $5 million from the Heretaunga-Tamatea treaty settlement, which was signed last month.
Principal Shane Hiha said Te Aute had produced fine Māori leaders and members of society, and said its environment should modernise to reflect its iconic state.
Mr Hiha wants to see the Ministry and Church both contribute $5m so there is a $15m fund for the school's sustainability.
But he said there were other opinions to be considered, so a working party would be developed.
Mr Hiha said improving the environment would attract quality teachers and more students, and would increase their overall academic, cultural and sporting success.