The extension of the Teach First programme comes after legal action taken by the Post Primary Teachers' Association (PPTA).
That resulted in the Employment Relations Authority rule that the Teach First scheme had been breaking the law.
That was because it places selected graduates into teaching positions that are not advertised.
With the long-term future of the programme unclear, an agreement was reached between the Ministry of Education, Teach First NZ, the University of Auckland and PPTA.
All parties agreed that Teach First NZ participants would now apply and be considered for jobs in schools alongside other teachers.
The PPTA considered the spirit of that agreement had been undermined by Parata when in June she introduced an amendment to education legislation, which would create a separate employment process for student teachers.
Act leader David Seymour said the decision to extend Teach First was a good one.
"If programs like Teach First are producing better results than traditional teacher training, then so be it. The purpose of teacher qualification should be to improve outcomes for students, not to protect the status quo."
Teach First
• Takes high-achieving university graduates for its on-the-job training programme.
• Begins with an intensive residential programme.
• Graduates then move in to low-decile schools. They are paid a full-time salary but have a maximum of 12 hours a week contact time with students. Mentoring is ongoing.
• Had 300 applications for its 20 places for 2016.