Waiariki Institute of Technology director of international students Graeme Rennie said the grant would have positive impacts on the Rotorua economy as a whole.
"This grant is classically Rotorua where we see the council and other providers working together with a common goal of enhancing our community.
"We are appreciative of the investment by Education New Zealand who see value in our efforts to further grow our international education offerings," Mr Rennie said.
Grow Rotorua chief executive Francis Pauwels said there was a "terrific willingness" from organisations keen to work together on the Education Rotorua Initiative.
"We are hugely grateful to the support of our steering group members, action group, and of course for the Education New Zealand funding which allows us to take the next strategic step in appointing an Education Rotorua co-ordinator."
Mr Pauwels said he was excited about the collective approach to education which allowed new relationships to be built between secondary and tertiary providers, tourism, and other support infrastructure.
"We are seeing examples of this collaboration already between John Paul College and Waiariki.
"This provides access to new markets that have not been visible to educators.
"It also positions Rotorua as a premier destination for international students to gain an education as well as experience all the unique opportunities the region has to offer."
Rotorua English Language Academy principal Chris Leckie said Rotorua could be proud of its educational achievements and there was capacity for more growth.
"We have world class educational institutions and Rotorua is recognised as an awesome, friendly and truly beautiful place to live and study."
