The council is preparing to convert former hospital site, empty for almost 15 years, into a new secondary school as part of an almost £60m investment in Croydon's schooling.
Croydon General Hospital, in London Road, was closed in 1996 but the site is still owned by South London and Maudsley NHS Trust.
At a cabinet meeting on Monday, April 23, councillors agreed to set aside £6m to buy the site for use as a new six form of entry secondary school, including a 180 place Sixth Form, to open by September 2015.
Coun Tim Pollard, cabinet member for children young people and learners, said: "The site has good transport connections, and has the opportunity to be the heart of the community along that part of London Road."
He emphasised the business community which surrounds the site will be fully consulted on the plans including issues with traffic and parking.
The plan was supported by labour councillors Kathy Bee, shadow member for children , and ward councillor Stuart Collins.
Croydon Council also revealed plans to spend almost £15m to convert the Croydon Adult Learning and Training (CALAT) site in South Norwood to provide additional four form of entry capacity to the existing school.
A total of £22.2m will be set aside for these projects should money not be provided by the Department for Education. Funding of up to £35.5m will also be needed if DfE money is not provided to add 12 more forms of entry across the borough by the 2019/20.
Schools considered for expansion include three at Quest Academy, three at Westwood Girls, two ar Oasis Academy Shirley Park, converting the disused former Ashburton Library building, two at Edenham High, and two at Archbishop Lanfranc.
The need is based on the fact the council expects a shortfall of 646 places by 2019 if provision remains the same.
Coun Pollard said: "Combined with recent additional announcements by the council this comes to around £170m investment in our borough’s schools, an unprecedented level that shows our commitment to education in Croydon."
Each proposal will be subject to public consultation.
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