PLANS for a multi-million pound school have emerged just hours after hopes for a new city academy in east Cleveland were dashed.

Redcar and Cleveland Borough Council had hoped to build an academy in Brotton costing between £12m and £16m but were forced to cancel the plan after discussions with the sponsor broke down.

But now the education authority is planning a new school which, unlike the academy, would remain under local government control.

The council wanted an academy for east Cleveland because fewer pupils were attending Freebrough Community College - formed five years ago to take over the sites of three former schools in Brotton, Skelton and Loftus. Discussions were opened with developers the Vardy Foundation which has already been involved in building academies in Gateshead and Middlesbrough.

However, talks broke down when education officers at the council disagreed about the academic curriculum.

Yesterday it emerged that new plans for a school in the area, which would be built on one of Freebrough College's three sites, were being considered.

Chief executive of the council, Colin Moore, revealed that discussions with developers Amey Plc have been going on since May.

He said: "It is simply not true to suggest that because we are considering an alternative to a city academy for east Cleveland, this will threaten the future of secondary education in the area. Since May we have been in discussions with Amey Plc, with whom we are already involved in a major strategic partnership, over the possibility of them developing a project to build a new school and we are very hopeful that, if those discussions prove successful, it will provide excellent facilities and opportunities for the children."

A major difference between an academy and a new school is that an academy would have become independent with a commercial board heavily involved in running its affairs.

A new school would remain under the control of the local education authority.

Amey has prepared a full business case for the proposed new school which will be presented to councillors next week. It is anticipated that Amey would pay the bulk of the building costs while the tax-payer would pay interest charges in a 25-year deal.