The initiative, which will give the education sector a formal avenue to air concerns about National Standards, has been welcomed by Otago principals.
National sector leaders were reserving judgement.
Mrs Tolley told the Otago Daily Times yesterday the move was in response to growing unrest among principals and teachers over implementing the standards.
"It's in response to the conversations I've had with principals and teachers.
"They are getting on with implementing National Standards, but there's been this disquiet around it.
"It just seemed to me that there was a real desire from these people to be involved.
"But there was no official means of doing that. So that's why this has been set up."
Mrs Tolley and the National Party have said 20% of New Zealand's primary and intermediate pupils are underachieving.
National Standards were flagged by the party in the 2008 election campaign and designed to address the situation.
Primary and intermediate schools throughout the country began implementing the standards in February this year.
However, there have been consistent expressions of concern about the standards from boards of trustees, principals and teachers - particularly in Otago.
Mrs Tolley said the establishment of the advisory group was in recognition of the role the education sector had to play in the implementation of National Standards during the next three years.
"It gives people a means of formally airing their concerns and contributing suggestions.
"We all want to be in this together and we all want to work together."
The group would consist of representatives from organisations such as the New Zealand Educational Institute, the New Zealand School Trustees Association and the New Zealand Principals' Federation, she said.
Places would also be reserved for four practitioners who do not represent any groups.
"They could be principals, teachers - people working at the chalk face."
Mrs Tolley hoped the group could meet within the next six weeks to begin discussions and set up a schedule of ongoing meetings.
The announcement has delighted Otago Primary Principals' Association president Jenny Clarke.
"It has been the NZPF and Otago Primary Principals' Association's expressed wish for a long time to have meaningful dialogue with the minister to constructively discuss the concerns held by many principals about the challenges of the National Standards system as it is currently presented."So, this is a welcome and exciting development."
New Zealand Educational Institute president Frances Nelson said the sector had been calling for engagement in discussions with the ministry for the past two years.
While she welcomed the establishment of the group, she was sceptical about its objectives.
"It is absolutely imperative that the discussions start with what is wrong with the standards and whether or not they can be fixed.
"And until we get a clear sense as to whether or not they can be fixed and/or made workable, the minister should stop schools from implementing them and reporting on them.
"If she's really serious about engaging the sector, she'll do this."
New Zealand Principals' Federation president Ernie Buutveld said he received a formal invitation last Friday to participate in the group, but was also being cautious.
"Once bitten, twice shy. We are considering it ...
"It's still early days yet and we need to think it through. It needs to be a genuine offer," he said.