Its proprietor, the Turakina Maori Girls' College Trust Board, first wrote to the minister in 2012 when it ran into financial trouble. It had "significant operating deficits" in relation to its physical assets and the operation of its hostel, and the deficits were being funded from diminishing reserves.
The Education Ministry appointed a limited statutory manager in December 2012 to take over its curriculum, employment and finances.
The school continued to operate but further financial concerns led to consideration of its closure earlier this year.
"While I know that my decision will not be what many in the wider school community would have wanted to hear, it should not come as a surprise," Ms Parata said.
"The struggles have been ongoing for some time. This announcement will give whanau certainty to plan for next year."
The Education Ministry would now begin working with the remaining students to find them schools for next year.