Two schools in Peterborough are to merge into what the city council says will be the most expensive state school in England.
Hereward Community College is to merge with Deacon's School
The Department for Education and Skills has given approval for the new £32m Peterborough Academy.
The secondary school, to be built in the east of the city, will mean a merger between Deacon's School - a specialist technology college - and Hereward Community College, which currently serve nearly 1500 pupils.
Tony Reinis, with the county's education department, told BBC News Online the funds would be used to provide the academy with the state-of-the-art computer equipment.
Councillor John Horrell, Cabinet Member for Education said: "This is excellent news for the whole city.
"We aim to offer every parent in Peterborough access to an excellent local secondary school with modern teaching and learning facilities.
"Our education system is hugely important to the future growth and development of Peterborough."
Mr Horrell said the council plans to invest a total of £100m in local secondary schools.
The Department for Education has asked the council and prospective sponsors to form detailed plans for the school over the next six months.
Consultations on the proposals will follow with parents, school staff, local residents and employers.
Subject to the Secretary of State for Education approving the final plans, Peterborough Academy will open in September 2006.