Hoping for a Labor victory at the federal election and a new school funding arrangement, the Andrews Government halted negotiations with its federal counterpart earlier this year.
Victoria was the only remaining state to refuse to sign the deal.
The Age reports that Andrews said Australians have elected a prime minister who will not budge on his school funding offer.
"We're really faced with a clear choice. We can either have no funding come from the Commonwealth to schools, or we can sign on to a deal that we don’t think is a good deal,” he said.
“It would seem it’s the only one on the table.”
Under the arrangement, independent and Catholic schools will reach 100 per cent of the schooling resource standard (SRS) in the next five years, while state schools will only reach 95 per cent.
“Parents will be pleased the Victorian Government is signing up for record funding for government schools, Catholic schools and independent schools,” Federal Education Minister Dan Tehan said.
“Our agreement provides Victorian schools with funding certainty.”