Research carried out by the Department for Children, Schools and Families found that the two-year programme saw the 11 authorities performing better than the national average on GCSE grades for looked-after children.
The virtual head teacher role was introduced in the Care Matters green paper and involves giving one person responsibility for all looked-after children in schools in a particular area.
The research found heads with a strong educational background were best suited to the position.
Researchers found the job title caused problems because children did not fully understand the concept, but face-to-face meetings and constant communication overcame this. Other areas of difficulty included data management and a lack of information about each pupil.
David Berridge, one of the authors of the report and a professor of child and family welfare, said: "Many of the virtual heads formed close relationships with individual pupils, which helped to focus on weaker areas."
Berridge said virtual heads, social workers and local authorities should work closely together to make the scheme work. He said: "If all three collaborate and understand each other's roles the system works significantly better."
Schools minister Vernon Coaker said: "The virtual school head model is becoming increasingly popular across the country, even before the end of the pilot, and I would encourage all local authorities who have not yet implemented this model to consider the benefits of doing so."
The virtual school head pilot scheme is running from 2007 to 2009 and the research was carried out over a period of nine months between October 2008 and June 2009.
