Pundulmurra Aboriginal College in Port Hedland has been granted independent status.
State Cabinet has agreed to a joint submission from Aboriginal Affairs Minister Judyth Watson and Education Minister Kay Hallahan to create an independent college.
The decision will enable the transition of Pundulmurra from a Ministry of Education school to an independent college under the Colleges Act (1978).
"Aboriginal people in the Pilbara will gain greater control over their education and job training," Dr Watson said.
"This decision will enable Aboriginal people to establish their own management board at the college and develop entrance criteria and curriculum.
"It is a major step forward in Aboriginal education and self determination in the Pilbara. Until now, Aboriginal people could only advise the Ministry on educational needs and directions, but as an independent college they will control the agenda."
Dr Watson said the move fits in with the recommendations and findings of the Royal Commission into Aboriginal Deaths in Custody which highlighted the importance of increasing the participation rate of Aboriginal people in education courses appropriate to Aboriginal needs and aspirations.
Mrs Hallahan said Cabinet's decision was in line with recommendations from a Government review of Pilbara colleges and policy initiatives contained in the Pilbara 21 study.
"The recommended change in status of Pundulmurra College to a college for Aboriginal people was supported by all sections of the college and Aboriginal communities," she said.
"The transition will enable Pundulmurra to concentrate its efforts on the provision of post-compulsory education and training for Aboriginal people."
Mrs Hallahan said there should not be any disruption to the 1993 student intake at Pundulmurra.