The Government has approved a merger between the East Coast polytechnic and its counterpart in Hawke's Bay.
From January, the Eastern Institute of Technology near Napier will combine with Tairawhiti Polytechnic in Gisborne, which has struggled financially for much of the past decade.
The Government has given $7.5 million to help with the transition, which takes effect from January.
Tertiary Education Minister Steven Joyce says the money is to clear a backlog of maintenance work at Tairawhiti and to pay for costs to rearrange courses.
EIT says all employees of both polytechs retain their positions for now, but back office jobs will be looked at in the new year.