It has been chosen as one of three finalists in the "innovation excellence" category at the New Zealand sport and recreation awards.
The other finalists are Squash New Zealand, for its work with an information technology programme, and the Canterbury West Coast Sports Trust, for its "Cheapskates Skate Skool" programme.
Being named as a finalist recognises the work regional sports director Des Smith has done in introducing sports councils to 18 of the Otago region's 23 secondary schools.
Otago leads the country in pupil representation rates in secondary school sport.
When sports councils were introduced to Otago secondary schools in 2008, there was a 62% participation of pupils in sport. It is now 69%, meaning 700 more pupils are playing sport. The national average is 51%.
Sports councils were introduced to strengthen the organisational structure for delivering sport in schools.
The joint aims were to increase participation and to enhance the quality of sport delivered to pupils.
Last year, the New Zealand Secondary Schools Sports Council recognised the innovation through an innovation in school sport award to the OSSSA.
Smith's innovation and the work of Otago secondary schools have now been recognised at the highest level.
"It was great to see Des's initiative given recognition and the Otago flag flown," Sport Otago chief executive John Brimble said.
"It has been a very successful strategy which is seen as a model for the rest of New Zealand."
John McGlashan College principal Mike Corkery said it was "deserved acknowledgement for a remarkable initiative that has benefited thousands of kids, has massively strengthened the links between schools and families and raised the morale of kids, parents, coaches and organisers involved in school sport."
The New Zealand sport and recreation awards judging panel of Sir Wilson Whineray (chairman), Sir John Wells, Sue McGregor, Peter Dale, Selwyn Maister and Peter Miskimmin met in Auckland to select winners in the six categories.
