A new method is developed for estimating photometric redshifts, using realistic template SEDs, extending over four decades in wavelength (i.e. from 0.05 mum to 1 mm). The template SEDs are constructed for four different spectral types of galaxies (elliptical, spiral, irregular and starburst), satisfying the following characteristics: a) they are normalised to produce the observed colours of galaxies at z similar to 0; b) incorporate the chemo-photometric spectral evolution of galaxies of different types, in agreement with the observations; c) allow treatment of dust contribution and its evolution with redshift, consistent with the spectral evolution models; d) include absorption and re-emission of radiation by dust and hence, realistic estimates of the far-infrared radiation; e) include correction for inter-galactic absorption by Lyman continuum and Lyman forest. Using these template SEDs, the photometric redshifts are estimated to an accuracy of Deltaz = 0.11. The simultaneous and self-consistent modelling of both the photometric and chemical evolution of galaxies and the effect of dust, makes this technique particularly useful for high redshift galaxies. The effects on the estimated photometric redshifts, due to assumptions in the evolutionary population synthesis models, are investigated and discussed. Also, the degeneracy in the predicted photometric redshifts and spectral types are examined, using a simulated galaxy catalogue.