NSW Education Minister Sarah Mitchell on Thursday released the terms of reference for the NAPLAN review, which will be led by emeritus professor Barry McGaw, professor Claire Wyatt-Smith and emeritus professor William Louden.

"In 2019, it is clear that a diagnostic test should be on demand, it must be linked to the curriculum, it must focus on student growth and it must test informative writing," Mitchell said in a statement.

"NAPLAN, in its current form, does not meet this criteria."

Victorian Education Minister James Merlino said it was common sense to review NAPLAN and see what changes could be made.

"The review may lead to significant change or it may recommend scrapping NAPLAN all together and replacing it with something new – but we will always need some form of standardised testing," Merlino said.

Under the terms of reference, the review will consider what the objectives for standardised testing should be - and how well placed NAPLAN is to meet them.

It will also look at effective overseas programs and determine short- and long-term improvements to standardised testing.

An interim report will be provided to the education council later in 2019.

AAP