Using technologies such as Skype, 3D graphics, podcasts and other online features, people of all ages will be able to study a wide range of subjects from their homes and offices, eliminating the need for classrooms and other learning facilities.
Education Minister Anne Tolley announced five successful applicants from a field of 113, all eager to become the country's first trades academies.
The Catlins Area School's bid was the only one accepted from the South Island and the school will provide the only fully virtual and computer-based service in New Zealand.
Deputy principal Allan Jon, who has spent months developing the bid and its associated software, said he was "floating" after hearing of the successful bid.
"It's just magic. I'm over the moon, I can't tell you how excited I am," he said.
A virtual "campus" will be developed online so learners from all over New Zealand can log in and be assigned tasks and assignments, just like in a normal classroom.
By using Skype and other forms of online communication, they will interact with teachers from around the country.
Aside from the online learning, students will get work placements up to two days a week so they can also learn "hands-on".
Mr Jon said the trades academy would be aimed at Year 9 to 13 pupils and adults.
Programmes are being developed across a wide range of subjects including aviation, tourism, travel and museum studies, joinery and glasswork, stonemasonry, painting and decorating, automotive, mining and drilling and civil engineering.
Mr Jon said "the beauty" of the virtual school was that it could cater for the needs of an individual - programmes can be designed specifically for them.
While thrilled to get the go ahead, Mr Jon said there was still plenty of work to do before the first enrolments were accepted towards the end of next year.
The first classes will begin in early 2011.
In a statement, Mrs Tolley said every student should have an education system which worked for them and met their needs and the New Zealand Virtual School in the Catlins would help deliver that.
"Trades academies are part of the Government's Youth Guarantee programme.
They'll provide more career choices for 16- and 17-year-olds and give them greater opportunities to develop their knowledge, skills and talents through trades and technology programmes."
The other trades academies announced by the Government are at Northland College; the Wellington Institute of Technology; the Taratahi Agricultural Centre; and a partnership between the Waikato Institute of Technology and Cambridge High School.
Six other proposals from around the country would be developed with a view to them also becoming trades academies, Mrs Tolley said.
