The kingdom's embassy said the King Fahd Academy in Bonn, Germany's former capital, will be closed in early 2017.
It said in a statement today that the decision was taken as part of Saudi Arabia's effort to provide the best education for its citizens.
The embassy says "Germany is known to have one of the best educational systems in the world ... Therefore our country sees no need to have its academy in Germany."
German authorities expressed concern in 2003 that the school might be used to spread Islamist ideology.