"We recognise the important significance of the historic building and gate on the current Shepparton High School site," a department spokesperson said.
The spokesperson said the building would continue to be used as a wellbeing hub for the students.
"The historic Shepparton High School building will be retained as a wellbeing hub where students can access a range of health and support services," the spokesperson said.
According to Greater Shepparton City Council's planning department, Shepparton High School was established in 1909, originally located on Fryers St, with an enrolment of 33 students.
At the time, the school was one of 10 agricultural high schools established in regional Victoria and was located between a primary school and educational farm.
The current building was constructed in 1929 on Hawdon St, and started with a cohort of 300 students.
"Aesthetically, the building is a fine example of an institutional building in the inter-war Georgian Revival style," a council spokesperson said.
Memorial gates commemorating past students and staff who died in the two world wars were installed in 1949.
MORE NEWS ABOUT SHEPPARTON HIGH SCHOOL
Speed Careering event at Shepparton High School
Shepparton High helps environment