Sedgefield Community College has been praised in a report by inspectors from the Office for Standards in Education.
The report notes the rapid changes the school has made under new headteacher Lynne Ackland.
Inspectors found teaching was good in many lessons and that pupils behaved well and had good attitudes to work.
The college has recently been awarded the Sportsmark and received a £35,000 National Lottery grant for sports facilities.
Pupils also have the opportunity to visit First World War battlefields and take part in European exchanges.
The college forges links with the local business community and higher education establishments.
In response to the report, the college is developing an action plan to address issues raised.
Durham County Council is currently assessing which aspects of the college building are in urgent need of refurbishment. Work is to begin in January.
In addition to a new information technology suite which opened recently, it is anticipated there will be funding for further IT facilities.
A spokesman for the college said: "With such excellent aspects upon which to build, Sedgefield Community College looks forward to a bright future."
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