New Zealand is to contribute $5 million to Samoan students who attend primary and secondary school.
The programme is for state secondary school students in years 9 - 11, with equivalent contributions to fees at Mission secondary schools.
In the capital, Apia, Prime Minister John Key said high school fees are a barrier for some families and New Zealand's contribution of about $200 per year, to 16,000 pupils, will counter that.
The money will come from NZ Aid and the cost will gradually be picked-up by the Samoan government.
Mr Key is in Samoa to mark 50 years since a Treaty of Friendship was signed between the two countries.