STOCKTON council is to seek planning permission for a 600-place secondary school at Ingleby Barwick.
The move is an important step forward for the project.
The council is working with the Church of England's York diocese and consultants PricewaterhouseCoopers to prepare a financial case for the school.
This business plan is vital to the success of a proposed funding bid for private finance and will be put before councillors next month.
Now nearing completion, it is described as "very promising" by those involved.
The decision to press ahead with an application for outline planning consent for the school at Blair Avenue will strengthen the business case still further.
At the same time, planning applications will also be made for two primary schools at Ingleby Barwick.
One of these would be next to the secondary school and would also rely on Private Finance Initiative funding.
The other would be a Church of England facility at "Village 5", which has yet to be constructed.
In another move to tie up the business case, the council will also consider the structure of the governing bodies of the three schools.
Government support is being sought to include community facilities in the secondary school plans, so that residents can use the site after school hours.
The council has lodged bids to allow a community library to be incorporated into the design, along with a full-size sports hall.
As with other community libraries, computer and internet facilities as well as books would be available for public use.
Coun Alex Cunningham, the council's cabinet member for education, leisure and culture, is pleased with the progress.
"The scheme is moving steadily forward," he said. "There is still a lot to do, but the signs are encouraging."
The council is about to launch a new round of public consultation, including a number of public meetings over the next few months.
"After that, the financial case will go before the council during September so that our bid can be submitted to the Treasury at the end of that month," said Coun Cunningham
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