A commissioner will take over the governance of Hato Petera College in Auckland.
A Limited Statutory Manager was appointed to the school last year to support its governance but the education minister said continued concerns have led to this decision.
Hato Petera College on Auckland's North Shore first opened in 1928 and has had many changes over the years but is currently the only Māori catholic co-ed school in New Zealand.
Education Minister Chris Hipkins has asked for a commissioner to take over from the Board of Trustees, which has been dissolved.
Mr Hipkins said the Education Review Office had had continued concern about the college's performance and viability and was not confident that it was able to offer a quality, sustainable education.
The roll has declined from 210 students in 1995 to an expected 11 this year.
The minister said no decisions had been made about the future of the college.
RNZ contacted the school's administration but they declined to comment.