Three students have been excluded from Feilding's Hato Pāora College after a police investigation into what the boarding school is calling "inappropriate sexual behaviour".
The alleged incident involved a group of boys in a school dormitory in mid-June.
The school's trust boardchair Tata Lawton said the school acted quickly when it learned what had happened.
"The school learned of the incident within days of it happening and notified parents, Police, Oranga Tamariki and the Ministry of Education immediately. They then enacted their own investigation.
"Once this was complete the college then implemented its hostel disciplinary process. As a result, three boys have been excluded from school. The disciplinary process continues for another, and the rest of the boys have returned to school," he said.
Police said the incident was referred to Youth Aid for a resolution and "no charges had been laid at this time".
The school said it continues to provide support to the boys involved.