Ministry of Education head of sector enablement and support Katrina Casey said the ministry had confidence in the fact the school had demonstrated an improvement in the middle of last year.
"We are yet to have confidence that these improvements can be sustained."
An Education Review Office Readiness Review was expected out at the end of the month, after it was withheld in September for the kura to address ongoing issues.
"The school is well aware of what steps we can take under the contract if issues are not addressed and standards are not met," Ms Casey said.
"The school has been told that it needs to do much better and it is now up to them. We have been considering all our options and are providing advice to the Minister on this."
While the school started last year with 61 students, despite the fact it was funded for 71, the roll quickly dropped. It now sits at 37 - the lowest it has been.
In Parliament yesterday, Ms Parata said there would not be a third round of charter schools, or partnership schools, this year.
Green Party education spokeswoman Catherine Delahunty said that was an "admission of failure".
Sponsored by Nga Parirau Matauranga Charitable Trust, the school was one of five charter schools that opened in 2014 including another in Whangarei. Four more have opened this year with one of those in Whangarei also.