Tynwald has agreed to fund the building of a new primary school in Douglas, on the site of the former Noble's hospital.
Henry Bloom Noble Primary School will replace two former town centre schools Ballacloan and Fairfield, which have served the catchment area for more than 100 years.
The project will cost will more than £9 million in total, with the education department today seeking approval for construction costs.
The scheme will see the former hospital ward block converted to provide 14 classrooms and a special needs unit.
An extension will house the sports hall, assembly and dining hall, staff facilities, kitchen, school entrance and reception.
After a presentation to Tynwald by Education and Children Minister Tim Crookall, members voted unanimously in favour.
Mr Crookall said every effort will be made to open up the school's sports facilities to the wider community: