COUNCIL officials have confirmed that only the site on which Hurworth School's buildings presently stand could be used for housing.
Rumours have persisted that the school site and surrounding land could be sold to developers, should the school be closed.
A spokesman for Darlington Borough Council said: "Housing could go on the school site, but not the playing fields."
Experts say the land could be extremely valuable as it represents a prime development site in an attractive area.
But Julie Wallin, commercial director of Carver Commercial Chartered Surveyors, said the loss of Hurworth School could also have an adverse affect on the local housing market.
"It would be devastating if the school were to close. Hurworth is an attractive village and a big part of what attracts people to that area is the school," she said.
Meanwhile, The Northern Echo understands that talks between Middlesbrough FC and a local landowner, about the sale of farmland next to the club's Rockcliffe Park training complex in the village, are at an advanced stage.
The Premiership club currently has planning permission from Darlington Borough Council for Rockcliffe Hall to be converted into a four-star hotel.
Consent was granted in 2000 for a 46-bedroom country house hotel, with health and leisure, which could include a golf course.
But the plans have so far failed to materialise and the club has appointed Stockton-based quantity surveyors Baker Mallett to look at the restoration of the Grade II-listed building.
The club has since built football pitches on the land that could have been used as a golf course.
A council spokesman said the use of any other areas as a golf course would require a new planning application.
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