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A row has erupted over plans to build houses on the site of Leicester Grammar School's junior building.
Governors at neighbouring St Paul's School want to use the Spencefield Lane site, but the grammar school has submitted plans for residential use.
The St Paul's bid to buy the land was turned down. Its governors have said housing would mean increased traffic and problems monitoring visitors.
The grammar school's authorities said they were still open to offers.
Leicester Grammar said it rejected the St Paul's bid because it was not high enough.
Laura O'Brien, the chair of governors at St Paul's, said: "The junior school site is designated for educational use and on this alone there would seem to be no justification for a change to residential use.
"We are worried about privacy and safety issues for the children if there was a residential development."
But Chris King, the head of Leicester Grammar, said negotiations had been going on for four years.
"We have given St Paul's preferred bidder status and would like to sell to them if they can come closer to the valuation we have on the site."
A decision is expected on the site in September.
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