The Government has announced that two schools in the Bay of Plenty township of Murupara will be merged into one.
There will be one area school for years one to 13.
Education Minister Hekia Parata says Rangitahi College will close and the new school will be on the Murupara Primary site.
A member of the local Ka Awatea working party to help oversee the merger says she's relieved that after three years of talks - the Government's made a decision.
Dawn Mitai-Peehi says the consolidation of the schools is supported by many in the community.
Ms Parata says the new area school will open at the beginning of the 2013 school.
The Ministry of Education says a new board of trustees will be appointed next year, which will set up the school and then appoint staff.
In the meantime, it says it will provide support to the schools during the reorganisation.