Stage Challenge has been cancelled, but students are "devastated" to see it go.

The team behind the annual Smokefree Rockquest high school events will now be running the replacement for Stage Challenge.

In February, Education Minister Chris Hipkins promised the Government would step in to find a replacement for the popular school cultural event, after it was canned due to a lack of funding.

Stage Challenge, which started in 1992, was one of the biggest events on the high school calendar, but was scrapped in January after the foundation in charge said it couldn't keep up with costs.

CHARLOTTE CURD/STUFFF Stage Challenege was a highlight of the school cultural calendar. The organisers canned the events at the start of the year, but a replacement has been found.

The Stage Challenge Foundation emailed teachers and sponsors to say the annual event, along with associated event J Rock, would not go ahead in 2018.

READ MORE:

* Education Minister promises to replace Stage Challenge, provides further funding

* Curtains for Stage Challenge as organiser says they can't keep up with costs

* Petitions launched to bring back Stage Challenge

* What does Stage Challenge mean to you?

More than 500,000 students had participated in the shows in the past 25 years. Last year, 17,000 students took part.

What does Stage Challenge mean to you? Share your stories, photos and videos. Contribute

On Tuesday, Hipkins - a former Stage Challenge participant himself - said a new school arts events would replace Stage Challenge later this year.

RockQuest Promotions Ltd (Rockquest) would run the event in 2018, funded by a one-off grant of $800,000 from the Ministry of Education.

The ministry was also working on a longer-term funding model going forward. This arrangement was a one-year contract with Rockquest.

CHERIE SIVIGNON/STUFF Chris Hipkins - the minister who saved Stage Challenge.

"I couldn't stand by and let these events disappear," Hipkins said.

"They are a great opportunity for young people to affirm and celebrate their culture and identity, be creative, and increase their confidence and leadership."

The ministry ran a tender process and received a range of good proposals from those who wanted to run the Stage Challenge replacement.

The new cultural event will be run by the organisers of the annual high school music event Rockquest.

Rockquest had a great track-record of delivering successful, large scale performance events for all ages and cultures and already had strong relationships with schools, Hipkins said.

The events, which have yet to be named, will enable Year 1 to 13 students to engage in music, drama and dance in their local communities. Successful performers will be offered the opportunity to perform in a national show.

Smokefreerockquest founder and director Pete Rainey said he hoped schools and students would be excited about the new format, and while it was governed by the ministry's criteria around the curriculum there would be "some exciting elements".

Rockquest founder and director Pete Rainey says he thinks students, teachers, and schools will be excited about the new event.

The events would be held in term three, with organisers hoping to deliver information to schools on the first day of term two.

Organisers were in the process of liaising with venues, and hoped to announce the new name next week.

Rainey said he understood this was a one-year contract, but hoped it would carry on beyond 2018.