A SMALL Durham infant school that could be closed in a £300m education shake-up is 'outstanding,' inspectors say.

St Oswald's Church of England Infant and Nursery School is one of 23 schools that Durham County Council could shut in a drive to reduce surplus places and implement a 'blueprint for excellence.'

But Ofsted inspectors concluded: "This is an outstanding school where pupils' standards of attainment and personal development are very high.

"Teaching and learning are very good throughout the school and pupils of all levels of ability and need make very good progress. Leadership and management are excellent and fully committed to further improvement. The school gives very good value for money.''

The team also found pupils' performance in the national tests and assessments in 2002 was in the top five per cent, both nationally and when compared to schools with a similar intake, in reading, writing, mathematics and science.

The school is close to Durham University and many parents are from academic and professional backgrounds. When the inspectors visited, the school had children from 16 nationalities, many of whom did not have English as a first language.

St Oswald's was listed for possible closure - the council says it is not a hit list - because it has surplus places that are expected to increase. But governors, parents and the Durham Diocese Board of Education say the school should be retained.

Governors' chairman Sue Pitts, Liberal Democrat leader of Durham City Council, said the school's marks put it in the country's top 2.5 per cent. "If the county does decide to close it they will look incredibly stupid.

"The county's education record is improving but it isn't in the top 2.5 per cent in the country and it is hard to understand how they could consider putting a school as excellent as St Oswald's on the list for consideration for closure.

"The school is far too good to lose and it matters to people. The inspectors found nothing that should, or could, be improved.''

She added that the surplus place position was 'not too bad' but that the threat of closure may have deterred some parents from sending their children there.

The Labour-run county council is working on more detailed plans for the shake-up in the light of comments made about its initial proposals. Some schools could be closed, some merged and new buildings with community uses built in a ten to 15-year scheme.