The end-of-term school report could be replaced by regular online updates under government plans due to be announced on Wednesday.
Parents will visit secure Web sites to read about their children's progress, attendance and behaviour throughout the school year.
Schools Minister Jim Knight said all secondary schools must operate the "real time" reporting systems by 2010, with primary schools following two years later.
"We know from schools around the country that if families are going to be involved in their children's education really effectively, they need a good two-way flow of information," he said in a statement.
"(We need) a channel which is more efficient and more frequent than a once a year written report, or a letter home when there is a problem or something to celebrate."
Parents would receive passwords to allow them to log on securely for updates. Some schools already run such systems.
It will not replace regular personal contact between parents and teachers and should not add to their workload, Knight added.
Speaking at an education trade show on Wednesday, he will also announce an extra 30 million pounds to help low-income families access the Internet at home.
Union leaders welcomed the drive to give more pupils access to the Internet, but said they wanted to see more evidence that online reports would not create more work.
"Jim Knight has to be far more specific about his goals for real time reporting to parents," said Steve Sinnott, head of the National Union of Teachers. "We will treat this aspiration with caution."
The Liberal Democrats' Shadow Schools Secretary David Laws said schools risked getting "bogged down in more bureaucracy" that distracts from teaching.
