The Examiner last year reported that the Catholic Diocese of Maitland-Newcastle purchased land off Medowie Road in Medowie last June.

It has now announced that construction is to commence on a year 7 to 12 school.

In one of the biggest developments to be made to Catholic education in the diocese's 180-year history, it was also announced that a second high school would be built at Chisholm while Lochinvar and Gateshead schools would grow to include years 11 and 12.

Director Ray Collins said that Catholic education was in great demand in the diocese, most notably in the growing communities of Raymond Terrace, Medowie, Salt Ash and Nelson Bay.

"With many Catholic students from Port Stephens currently travelling into Newcastle, a Medowie high school will provide a more viable alternative," Mr Collins said.

For the Buckley family of Salamander Bay, a future high school in Port Stephens has many benefits.

"It would mean that the children could remain involved in their sport and after-school activities in their local community," said mother-of-four Sally Buckley.

Member for Port Stephens Kate Washington, who has long campaigned for a state high school in Medowie, said the announcement places the Baird Government under more pressure to honour its promise to deliver bolstered education funding to the area.

"Before the 2011 election, Education Minister Adrian Piccoli stood in front of land owned by the Department of Education and promised an elected Liberal Government would immediately commence planning and design to make Medowie High School shovel-ready," she said.