Councillors have voted to sell the Queen Anne School site in York to St Peter's School after a public meeting overwhelmingly backed the idea.
Members of the City of York Council's executive committee decided to choose the £4.8 million bid even though it was lower than the other three bids under consideration.
The St Peter's bid received the vast majority of support at a public meeting held last month. Officers told councillors the St Peter's bid was for educational use only and any extra traffic generated would be minimal.
It would also mean a quick sale by early next year, would not need planning permission, and it would ensure continued community use and the retention of the sports hall.
The other three education and housing bids, two of which involve nearby Bootham School, involved offers of between £5 million and £6.2 million.
Coun Janet Looker, executive member for education, said she thought it was the right decision taking into account the public meeting.
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