A school in New Zealand is struggling to stay open after the number of students dropped to just two - the principal's children.

Paerau School in Central Otago, New Zealand, has only two students who are the children of principal Steve Harley.he board of the school is now planning to offer a year of free accommodation to a family with school-aged children to increase the number of students.

According to the Otago Daily Times, a family had taken up the offer a year ago but they shifted away from the South Island district.

The remaining two students are the children of principal Steve Harley.

School board chairwoman Erin Elworthy said that the student count at Paerau School, founded in 1915, fluctuated in the past, which was normal for a small country school, reports News.com.au.

The maximum number of students was 17 in the last decade. (ANI)