The government has approved the merger of the Bay of Plenty and Waiariki polytechnics.
It said the two institutions, which are based in Tauranga and Rotorua, will form a new institution in May next year.
The Tertiary Education Union said it was astonished by the decision because most submissions on the proposal were opposed to it.
But the government said the merger would result in more effective educational delivery, less duplication and a region-wide approach to tertiary education.