The Welsh government said the tests taken by pupils in years 2 to 9 would be scrapped in favour of personalised online assessments that have been specifically designed for use in Wales.
It stated the assessments would automatically adjust the level of the questions to match the individual taking the test, providing an appropriate level of challenge for each learner.
It said the assessments, which are to be phased in over three years, starting from the 2018/19 academic year, would reduce marking time and administration.
The scheme would allow schools to test classes, small groups or individuals according to their facilities and at a time that works for them and their learners.
Wales’ education secretary Kirsty Williams said: “The move to online personalised assessments for reading and numeracy will benefit pupils, parents and teachers.
“Pupils will be taking assessments that will adapt to their needs and skills. They will have the benefits of automatic marking and schools will have feedback faster than before, giving them a better picture of how they can help all their learners to move on.
“This approach is tailor-made for Wales. It shows how we are investing in our schools to continue our national mission of education reform to drive up standards and make sure every pupil in Wales, whatever their background, has the opportunity to fulfil their potential.”
The scheme will cost £8 million over four years, but could create on-going savings of around £2 million a year from 2021.