It's a blow for the NSW government just days before the election, after the strategy was recently endorsed as a key plank to address the dire shortage of teachers.
A panel established last year by the federal government tasked with improving initial teacher education to boost graduation rates said a two-year masters degree was the best way to prepare teachers for classrooms.
"The panel does not see a case for returning to a one-year graduate diploma of education as a way of shortening the time spent out of the workforce," the Teacher Expert Education Panel report published on Thursday said.
It described the qualification as "not academically and professionally proportionate with the complexity and status of teaching".
The panel is chaired by former NSW Education Secretary and ex-ABC managing director Mark Scott who is now Vice-Chancellor at the University of Sydney.
NSW Premier Dominic Perrottet, who has been on the campaign trail ahead of Saturday's election, has backed a Productivity Commission proposal in to get graduates in the classroom as soon as they complete the one-year postgraduate course.
"I don't want a single person who is considering starting this fantastic career to be deterred by an unnecessary additional year in their training," he said in January.
NSW Teachers Federation president Angelo Gavrielatos said the panel's emphatic rejection of the one-year qualification shows the government had run out of ideas to recruit teachers.
"Cutting qualifications and bringing in untrained teachers into NSW classrooms, as Mr Perrottet plans to do, would be an unmitigated disaster for NSW," he said on Thursday.
"It won't fix the teacher shortage because the retention rates of these teachers are far worse than fully trained teachers."
There are more than 3300 teaching vacancies across the state, with 55 per cent of all vacancies outside major cities.
"To make teaching more attractive and stop the shortages we need to address unsustainable workloads and uncompetitive salaries," Mr Gavrielatos said.
The report also noted "financial barriers are the most significant barrier to entry for mid-career cohorts" including "the pay cut commonly incurred when switching to teaching".
Mr Gavrielatos blamed the government's three per cent wage cap as one of the main factors driving teachers out of the profession.
When asked about the chronic teacher shortage while campaigning in Camden in southwest Sydney on Tuesday, the premier said "we have a fair and reasonable approach when it comes to wages".
Labor, which has made education a key plank of its campaign, has promised to convert 10,000 casual positions into permanent roles along with scrapping the wage cap across the public sector if elected.
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