Rebecca Brake, the managing director of Lakes Performing Arts Company said it was fantastic the Ministry of Education had stepped up and offered something to provide students with performing arts opportunities.
"It's brilliant. I'd love to have a look at the event more and see what's involved and I look forward to seeing it here in Rotorua," she said.
"We'd be really keen to be involved and help."
Brake said having the event this school year would be a challenge, timing wise.
In the meantime, the company was proceeding with its own Stage Challenge-esque event at the end of May.
The event, Art in Motion, is also being run in Auckland and Northland by other performing arts centres.
"We've got about eight schools in Rotorua. The schools have been really supportive," Brake said.
Hipkins said he couldn't stand by and let the events disappear.
"They are a great opportunity for young people to affirm and celebrate their culture and identity, be creative, and increase their confidence and leadership," he said.
"Rockquest has a great track-record of delivering successful, large-scale performance events for all ages and cultures and already has strong relationships with schools."
Singer-songwriter Lizzie Marvelly was "gutted" to hear about the loss of the programmes when it was announced and said it was awesome the opportunity to experience a similar event was being reintroduced.
"Arts education is such an enriching part of school life; it would have been really sad to see Stage Challenge and J Rock disappear completely."
The events, which have yet to be named, will enable Year 1 to 13 students to engage in music, drama and dance in their local communities. Successful performers will be offered the opportunity to perform in a national show.
The contract with Rockquest is for this year, funded by a one-off grant of $800,000 while the ministry develops a longer term solution.