The Longbeach Playcentre in Willowby, south of Ashburton, has planned a community meeting on Tuesday night at 7.30pm to find a solution.
Its landlord, the Longbeach School Board of Trustees, cited the reason for the decision was a growing school roll and increased pressure on existing spaces.
The playcentre, which has had a building next to the rural school for the past 20 years, said "we need your help" on its Facebook page.
"Longbeach School have chosen not to renew our lease and so we need a new home.
"To say we are gutted is an understatement.
"Playcentre has limited funds to buy us a new building or property. But we are determined to move forward, however that may look, and need all the support we can muster to do that.
"We are holding a meeting at playcentre on Tuesday the 5th of August at 7.30pm for everyone who would like to see Longbeach Playcentre remain in our community into the future."
In a statement, Longbeach School BOT said: "Following extensive discussions and careful considerations, the Longbeach School Board of Trustees has confirmed its decision not to renew the lease for the Longbeach Playcentre building.
"The current lease will conclude at the end of 2025.
"This decision follows a thorough review process, which began in February of this year, involving consultation with the Ministry of Education, engagement with key community members, and input from former Board of Trustees members.
"As a board, we understand the significance of this decision for our community and want to assure everyone that it was not made lightly. Our priority remains the well-being and educational needs of our students.
"The decision is driven by changing demographics, a growing school roll, and increasing pressure on existing spaces. The school is currently facing a shortage of teaching spaces, which has led to the repurposing of the library and arts centre for classroom use.
"The staff room, offices and other breakout spaces are also being used for tutoring, Mana Ake student support and music lessons, limiting their availability for teacher aides to work with groups and therefore impacting the learning.
"These compromises are not ideal for our students or staff.
"As a board we must prioritise creating a supportive and effective learning environment for all children at Longbeach School.
"We are committed to supporting the Playcentre through this transition. Assistance will be provided to explore alternative venues.
"We value the role the playcentre has played in our community over the past twenty years and will do what we can to support a smooth transition."
