Budawang School has outgrown its existing facilities in Ulladulla - families have been placed on waiting lists and classes are full.

READ MORE: Budawang School lobbies for larger facility

The school will be relocated to the old Shoalhaven Anglican School site in Milton.

There, school facilities will be purpose-built for the needs of Budawang students.

South Coast MP Shelley Hancock brought Education Minister Rob Stokes to the region to share the news on Wednesday.

"This is an enormous site, it will allow us to provide that certainty for Budawang and to look into other ways we can use the former Anglican school as well," Mr Stokes said.

There is still scope, on site, to accommodate a new high school - something the community has campaigned for passionately.

READ MORE: SAS site purchased for $4.25 million by state government

"That is still very much on the cards, there is room on the former Anglican school to imagine all sorts of different possibilities including a new high school," Mr Stokes said.

"I've heard talks of a new middle school or lower school being developed in coordination with Ulladulla, that will be very much a matter for the community."

Next, the state government will launch community consultation to determine how best to use the remaining land on the Milton site to deliver extra public school facilities for South Coast students.

“The NSW Liberals and Nationals purchased the site in 2018 to secure it for the provision of future educational purposes and I am proud to say that we are now delivering brand new state-of-the-art facilities for some of our most inspirational students,” Mrs Hancock said.

There is no timeframe on the delivery of the project yet, and the government is yet to released projected costings.

Mr Stokes did not deny the announcement has come just in time for their state election campaign.

"It's very important the community knows what plans the government has if reelected for the next four years," he said.