The school was in dire straits a few years ago until its children wrote two books about Shrek to raise money. The books were so successful the school was able to hire an additional teacher.
Shrek died on June 6, 2011 but talk of his destiny was hush-hush. Te Papa kept quiet. Otago Museum admitted it wanted him but said the decision lay ultimately with Bendigo Station owner John Perriam.
Shrek was stuffed by Queenstown taxidermist David Jacobs.
He said Shrek's hide was tanned and he created a mannequin. A "death mask" helped ensure Shrek's distinctive face remained recognisable.
Mr Jacobs said Shrek was a "national icon" and many people would probably like to see the sheep on display more often, perhaps in Otago or other museums.
"I know Otago Museum was very, very interested in having him. And it became quite political," Mr Jacobs said.
"What people don't realise is the national museum has millions of artefacts and they can only have probably 1 per cent of 1 per cent on display at any given time."
Bendigo Station owner John Perriam said he had fond memories of Shrek. "It was a fantastic journey for seven years with Shrek on the charity fundraising treadmill."
Shrek earned "more than an All Black" for public and corporate appearances.
"He knew he was special and a celebrity, always leading the way up airport elevators and into first class lounges," he said. "His trust in me and the people around him was uncanny."
Te Papa curator Claire Regnault said Shrek was a high-achieving sheep.
"Shrek's woolly story, his surprising personality and his international profile have helped improve the lives of others," she said.
The shears used when Shrek was first shorn, as well as crampons he wore during a publicity stunt on an iceberg off the Otago coast will also be on display. NZME.