Kawerau Intermediate School's board of trustees says a plan to merge the school with Kawerau College goes directly against the community.
The Government has announced it will invest $6 million in expanding the college into a year 7-13 school next year, following the intermediate's closure.
The board says the Government has ignored its unanimous wish to retain the intermediate school. A public meeting will be held on Tuesday to discuss possible legal and protest action.
The ministry has given the schools 28 days to respond before a final decision is made.
There are 150 pupils at the intermediate school and about 300 at the college.
Kawerau mayor Malcolm Campbell welcomes the merger, saying the Government's plan to invest makes good sense and will be the best outcome for the long term. He says other schools throughout the country have successfully merged.
The intermediate school's future has been under review for nearly a year. In May, the Ministry of Education sought to merge it with two primary schools in Kawerau.