An Aboriginal community has taken the lead on improving education services for its youth, with a group in the Northern Territory putting up $1 million for a customised approach to learning.

The Jabiru-based Gundjeihmi Aboriginal Corporation has signed a 25-year agreement with the Children's Ground organisation to set up a new approach to education, health, wellbeing and development in the top end.

Mirarr elder Annie Ngalmirama said: "We Aboriginal people are taking the lead in this matter. We're going on ahead and making this funding ourselves and we are doing this work to make this project happen."

Students under the program will be taught in a native tongue such as Gundjeihmi or Gunwingku, then in English. Elders hope students will gain the confidence to communicate freely in their own language as well as in English.

The chief executive officer of Children’s Ground Jane Vadiveloo says the novel approach has not been tried in many other parts of the world and could be a pioneering program for alternative education.

“It marks a dramatic change in how we work,” Ms Vadiveloo said.

The program will be supported by a $2 million grant from the Federal Government; it will bring together 13 outstations at the existing site of the P-12 West Arnhem College and boarder house.