Education advocates have expressed a wary relief at the Abbott Government's Gonski "backflip".
Lila Mularczyk, who is president of the NSW Secondary Principals' Council and principal of Merrylands High School, said she was glad the Coalition had ''retreated to its pre-election promise''.
''We'll certainly proceed with caution given the history of their deceit over the last fortnight, and we continue to advocate for the agreement for six years of the funding model,'' she said.
''I think they understood they were about to have a huge backlash from the community.
''There has been extreme anxiety, distress and disillusionment with the government over their actions and statements.''
The executive director of the Association of Independent Schools of NSW, Geoff Newcombe, said the sector would be ''delighted'' by the development because they did not want to reignite the war between public and private schools.
But, while he supports the principle of the Gonski model, he hoped the method of allocation would be reviewed because it was ''a mess''.
The Catholic Education Commission executive director, Brian Croke, said he welcomed the federal government's decision, which ''confirms funding certainty for all NSW schools beyond 2014''.
''The Catholic sector will now focus on the government's commitment to reduce red tape and the compliance burden that falls on principals and system leaders,'' he said.
The chief executive of the Sydney Anglican Schools Corporation, Laurie Scandrett, said: ''This is excellent news for all schools across all sectors, and it is also very good news for the other states''.
NSW opposition spokeswoman on education, Carmel Tebbutt, said Mr Abbott's ''continued backflips and policy changes on education are causing enormous anxiety for parents and teachers''.
''The NSW opposition want to see the Abbott government honour the agreement NSW signed in its entirety, including needs-based funding and the six-year term.''
The president of the NSW Teachers Federation, Maurie Mulheron, said the Abbott government found a solution to a political problem, not a funding problem.
''Tony Abbott is attempting to neutralise the Gonski funding debate because it's become a political difficulty as opposed to embracing the findings of the Gonski review.''
He said there was no cause for celebration and the federation would continue its campaign for the full six-year agreement.
''What will the next press conference bring? Another about-face? Another backflip?'' he said. ''The only thing they have been consistent about is their opposition to a fairer funding model from day one.''
Just days after attacking his federal colleagues for acting like an opposition, Premier Barry O'Farrell was effusive in his praise for Tony Abbott after education funding was restored to NSW.
Mr O'Farrell said he welcomed the Prime Minister's commitment to lock in four years of schools funding for NSW in line with the agreement signed with the Commonwealth earlier this year.
The Prime Minister called Mr O'Farrell in India.
''This announcement removes any uncertainty about funding for government and non-government schools across the state,'' Mr O'Farrell said. ''It not only highlights Tony Abbott's willingness to listen, but also demonstrates what can be achieved when a federal government is prepared to sit down and work with the states.''
The Premier has been a strong supporter of the Gonski schools funding model, but on Monday said there was ''always room for improvement''.
''So I also look forward to a sleeker federal oversight structure,'' he said.
The Australian Education Union's deputy president, Correna Haythorpe, said it was not clear whether the federal government would honour the Gonski agreements and match Labor's education funding commitment.
''There are more questions than answers today,'' she said.
''This is the fourth position on this issue that Prime Minister Abbott has held in as many months. Today's statement has done nothing to provide certainty for Australian schools.
''This is not a national agreement, this is Mr Abbott looking for a quick fix to take schools funding off the agenda, following a major public backlash over their attempts to break their unambiguous commitment to Gonski.''
With Callan Lawrence