The project will involve the relocation of the existing Budawang School in Ulladulla to Milton delivering purpose-built learning spaces and a hydrotherapy aquatic facility to cater to students with moderate and severe intellectual disabilities from years K-12.

There will be seven new learning spaces to accommodate student growth and new core facilities.

State Member for South Coast, Shelley Hancock welcomed the progress of the project.

"This is an important project for the South Coast. I share the community's excitement and look forward to the school starting to take shape," Mrs Hancock said.

"We want to provide the community with an unique new school with modern facilities, tailored specifically to the needs of the students and the community,"

Minister for Education Sarah Mitchell said she was pleased the project was moving ahead.

"I'm very pleased the NSW Government is delivering these much-needed educational facilities to cater for the students that need them on the South Coast," Ms Mitchell said.

"This site has plenty of potential for providing wonderful facilities. It has been master planned to deliver a new Budawang School and to allow for expansion of educational facilities if required in the future,".

"We are committed to strengthening education infrastructure to support the future of all children in NSW.

Construction is expected to begin in late 2021, subject to planning approvals.

The NSW Government is investing $7.9 billion over the next four years, continuing its program to deliver 215 new and upgraded schools to support communities across NSW.

This is the largest investment in public education infrastructure in the history of NSW.