An enraged teacher at an elite school in Victoria has been caught erupting at her students in an expletive-ridden rant.

The teacher at Ballarat Clarendon College in the state's Central Highlands was recorded chastising her Year 12 students during a Teams call last week.

The college is widely regarded as a top performing school with fees for Year 12 costing about $21,000 a year.

In the leaked video the teacher can be heard admonishing students for 'f***ing appalling mistakes' they made in draft essays written in preparation for their VCE exams.

The students are studying two books this term, Seven Stages of Grieving by Wesley Enoch, and The Longest Memory by Fred D'Aguiar, the Herald Sun reported.

Ballarat Clarendon Collage (pictured) said it was aware the leaked Teams call was circulating social media and asked that students desist from sharing the video.

The unnamed teacher chastises her students for referring to a character from the second book, a slave called Whitechapel, as an Indigenous Australian.

'Is Whitechapel a f***ing Indigenous American? I'm not joking. No, First Nations people in America are native American Indians.

'They are not African-American. African, it's the first part.'

She continues her foul-mouthed rant as her students sit in silence.

'It's absolute dogs***. Whitechapel is not an Indigenous Australian - three of you did that,' the teacher is heard yelling at her students,' she yells.

'Do you know who Indigenous Americans are?

'Sort out that s***, that sucks, get rid of that. That f***s up your essay so bad.'

She then tells her students that their general statements are 'so f***ing shit'.

'I nearly killed myself as I was reading them. We are going to sort them,' she yells.

'If your essay starts crap, guess how I am going to feel about it as I am reading it.'

Ballarat Clarendon College, a coeducational school that offers boarding, sent a letter home to Year 12 parents acknowledging the 'complex and difficult situation'.

The school said it was aware footage from the leaked Teams call was circulating on social media and asked that students refrain from sharing the video.

Ballarat Clarendon College, a coeducational school that offers boarding, sent a letter home to Year 12 parents acknowledging the 'complex and difficult situation' (stock image)

'The recording was of a Year 12 class that occurred earlier this week in which the teacher's behaviour fell outside that which would be expected of a staff member at Ballarat Clarendon College,' the statement said.

'We know that the recording has been distributed through social media. That the video was copied from a Teams recording of the class has a range of implications for those sharing the video.

'The sharing of a school video falls outside of our community expectations and, to be clear, falls outside the law. We ask people to desist from sharing the video and to delete the video if you have or do receive it.'

Clarendon College said it had 'commenced a process around this incident that will be followed appropriately and sensitively'.

'As a community, we need to be respectful of those involved who have the right to confidentiality,' the statement said.

Daily Mail Australia has contacted Independent Schools Victoria for comment.