Council chiefs have signed an agreement to build a new school.
Derbyshire County Council has struck a deal with the Education Funding Agency to replace Alfreton Grange Arts College.
Alfreton Grange was earmarked for a major revamp under the Building Schools for the Future project until it was scrapped by the Government.
When the programme was cancelled in 2010, it was replaced by the Priority School Building Programme.
It was announced in 2012 that Alfreton was the only Derbyshire school to secure funding under the new scheme.
Building work is due to start in 2015 with the new school opening in 2017.
Under the scheme the Education Funding Agency – and not the county council – will be responsible for constructing and financing the new multi-million-pound building on the site of the existing school.
However, the EFA money isn’t enough to buy new furniture or equipment for the school so the county council has stepped in to provide £1m to help towards the scheme.