Ministers still divided on school funding

Australian education ministers agree stable and needs-based funding is important - but they have not yet agreed on how to do it.

State and territory ministers met with federal Education Minister Simon Birmingham in Melbourne to talk about about future policies on Friday.

Senator Birmingham wants states to agree to conditions including testing of Year 1 students, minimum school-leaver standards and better teacher training in exchange for Commonwealth money.

After the Education Council meeting Senator Birmingham told reporters the states and territories had all agreed to work with the federal government on prospects for a new school reform arrangement.

Victorian Education Minister James Merlino came out of the meeting saying Senator Birmingham had tried to make them all agree to ditch the final years of Gonski funding, and they have refused to do so.

But Mr Merlino said that despite that, the council would not be sidelined on education reform.

State and territory leaders will prepare detailed advice about education funding reform for their next COAG meeting which will likely be held in April.