A £12M school for children in east Cleveland looks likely to be in one of the area's smallest towns.

However, opposition councillors have criticised the plan for the new school arguing the district's youngsters could have had a better college if a deal with private sponsors had not been abandoned.

Planners at Redcar and Cleveland Borough Council identified the site of the current De Brus School, at Skelton, for the new building.

If it is chosen, children from Brotton, Loftus and the surrounding areas will in future have to send their children to school by bus.

The Freeborough Community College building would replace its three current centres in Brotton, Skelton and Loftus, to form just one school for 1,100 students.

Today, councillors at Eston Town Hall will discuss the proposal to build at the Skelton site and will be given an update on discussions with developers Amey.

A report to the council took into account planning issues, transport costs and the existence of local facilities before choosing the site ahead of Brotton and Loftus.

Previous discussions for a £16m Freeborough College academy were held between the council and commercial sponsors the Vardy Foundation, set up by motor dealer Sir Peter Vardy.

The foundation has already been involved in the building and running of academies in Middlesbrough and Gates-head.

However, talks broke down when the council disagreed about what should be on the academic curriculum.

Labour's David Walsh, council leader, also said the authority would prefer the school to remain under local authority control.

But leader of the Independents, Steve Kay, yesterday argued the authority would have been better off persevering with the commercial sponsors, the Vardy Foundation.

He said: "I welcome the new school for east Cleveland, but I believe it will not have the facilities planned for the earlier city academy, which would have attracted £16m of outside money into the area. What we are getting is, in my opinion, second best.

"The new college will, nevertheless, be a marvellous facility for Skelton and a great improvement educationally on the present situation.

"What concerns me, however, is the loss of bona fide secondary education from Loftus, a town that is becoming increasingly run down and marginalised by the Council."

It is anticipated that developers Amey would pay the bulk of the building costs and the tax-payer would pay interest charges in a 25-year deal.

* An office has been taken in Middlesbrough town centre to promote the £20m Kings Academy, which is scheduled to open in the south of the town next September.

The centre will provide information on the academy, which will replace Coulby Newham and Brackenhoe secondary schools.

The Vardy Foundation is putting £2m into the school.

Project director David Vardy said: "With the prospectus now available, we expect very many parents will be wanting to talk to us about how the academy can open up new opportunities for their children.

"We are keen to provide as much information as possible, through the new office, through our newsletters which are distributed to people throughout the area and of course, via the parents' consultative group which is closely involved in helping to prepare for next September's opening."