Nursery and special needs school Side by Side has received Hackney Council's approval to build a £10.5 million school at Lordship Road in Hackney, the former site of Avigdor Primary.
The new build will increase the school's capacity from 80 to 110 pupils aged from two to 19, as well as doubling the floor area of the school site in Stamford Hill. The land which the school currently occupies was lent to Side by Side by the LA on a provisional basis. The school has been campaigning for a permanent school for five years.
The state-of-the-art school will have 16 classrooms and will include a therapy room and a sensory room.
The plans also include the construction of 18 flats to be built on top of the school, which are to be sold or let to contribute to the building costs.
Jacob Sorotzkin, chairman of Side by Side, said: "This exciting and ambitious plan to build a permanent, modern school for our children will ensure that our pupils have a place where they can learn, flourish and excel."
Side by Side was founded in 1996 by Rebecca Rumpler after she was unable to find a local nursery prepared to take in her son Judah, who was born with Down's syndrome.
Building work is due to commence in July 2017.