Education Minister Anne Tolley has decided that Aorangi School in Christchurch should close.

The school has a falling roll and needs major investment in its buildings, and the community is served by other nearby schools.

"In the current economic climate I don't believe that the school's planned replacement building programme, costing over $2 million, can be justified or is an effective use of taxpayer money," said Mrs Tolley.

"Nearby schools have potential capacity to provide a good educational environment for Aorangi's current students and I am confident these children will do as well, if not better, in other schools.

"I am also confident that a new bilingual unit can be established in the area and I have asked the Ministry to treat this as a priority.

"I made this decision after carefully considering reports from the school, an independent facilitator and the Ministry of Education. This followed a consultation process involving parents, local iwi and the boards of schools whose rolls may be affected."

The Board has been asked to provide final arguments as to why the school should stay open, which must be provided within 28 days. A final decision will be announced soon after this.