Ministers have decided not to call in plans for a new school on common good land in Peebles.
A new primary will now be able to be built in Peebles
It means Scottish Borders Council can go ahead with rebuilding Kingsland Primary at Neidpath Grazings.
The proposals have divided the town with some welcoming the "landmark" building but others concerned by traffic problems and site issues.
Council leaders have expressed delight at the move and called for the community to get behind the plans.
The new Kingsland will be built on the Neidpath site with the old building upgraded for pupils from the town's Halyrude Primary.
Education spokesman Cllr Andrew Farquhar said: "We are really delighted by the Scottish Executive's decision.
"We desperately need to replace this school building and we know that everyone at the school is wholeheartedly behind the proposals.
"While we think Violet Bank could be an acceptable fallback position, Neidpath Grazings is the better site."
He said the Neidpath site was the preferred choice of the staff, school board and the majority of parents.
"I sincerely hope that those who have made their objections so vociferously will put this behind them and take the opportunity to make a positive contribution," he added.