The school is among the most successful in the North West
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Hundreds of parents are opposing an attempt by the Church of England to impose its identity on one of the most successful grammar schools in England.
Diocese bosses believe the Blue Coat School in Liverpool should have been designated a Church of England (CofE) school, based on historical documents.
School bosses and parents are resisting what they see as a "hostile takeover" and want it to remain multi-faith.
The Diocese of Liverpool says it has no intention of changing the school ethos.
It has asked the Department for Education and Skills (DfES) to clarify the position of the school and whether it should be designated as a Church of England school.
In 1998, Blue Coat was classified as non CofE school - but the diocese believes its founding charter is evidence it should be otherwise.
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This is certainly not an attempt to take over the running of the school or to control admissions
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Head teacher Sandy Tittershill was meeting with the school's lawyers on Wednesday to discuss their opposition.
He said: "I have been here for more than 40 years and no one during that time has ever suggested to me that this, at any time, was a Church of England school.
"This has been a school for everybody - we are a multi-faith, multi denominational school. We are very content, very dynamic and we're very successful and also very popular - and we wish to remain as we are.
"We have received about 700 letters so far in support of the Blue Coat School maintaining its current status and only five in support of the Church of England."
Public meeting
In 2005, 98% of pupils at the school, in Wavertree, achieved at least five A* to C GCSEs.
School bosses fear that its admissions policies could be affected if the Church is successful.
But the diocese said it would have no control over admissions, and maintained it would be a matter entirely for the governors.
"If it were designated as a Church of England school we would simply aim to support the governors and staff as they continue their work," a spokesman said.
"This is certainly not an attempt to take over the running of the school or to control admissions," he added.
A public meeting is being held at the school on 8 January and it has until 9 February to respond to the DfES.