An East Yorkshire council has been awarded £12m to rebuild a school in Goole after pulling out of a joint bid to secure £182m with another authority.
East Riding Council will contribute £3m towards the cost of the rebuild
East Riding Council pulled out of its bid with Hull City Council when it realised it may not get any cash until 2010, while Hull would benefit in 2006.
Now it will use the Targeted Capital Fund (TCF) cash to repair and replace the crumbling site at Vermuyden School.
The money is part of £89m awarded to the Yorkshire and Humber region.
Director of children, family and adult services said the funding boost would help lay the foundation for further progress in raising standards.
"Big strides have been taken at Vermuyden School, with some of the biggest improvements in GCSE achievement in the East Riding this year," he said.
"It also means we can start planning for phase two, which aims to create a centre of excellence for post-16 learning in collaboration with the three local secondary schools, Hull College and the Learning Skills Council Humberside."
East Riding Council originally teamed up with Hull City Council in a bid to get £182m to rebuild or refurbish 19 secondary schools in the two districts.
The two councils have predicted that by 2008 there will be more than 3,000 surplus places at secondary schools in Hull and the four East Riding schools that lie on the city's borders.
But in April, East Riding Council announced it had pulled out of the bid.
It said the funding disparity and Hull's plans for a city academy made it difficult to plan future school sizes.