Work to develop a new school in Poundbury for Damers First School will begin in the next few weeks.
The school will relocate from Dorchester in a move that will expand its capacity from 450 to 600 pupils.
Building work is expected to be finished in December 2016, with pupils and staff moving into the new building in spring 2017.
Cllr Trevor Jones said: "It's almost 20 years since the proposal to relocate Damers First School to Poundbury was first agreed in principle, allowing for a much better school building and release of the old site for additional hospital use. It's all taken a long time but I'm delighted that we're nearly there."
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In addition, Morgan Sindall is set to build the first phase of the new £5.4 million Bere Regis Primary school in Southbrook.
Councillor Toni Coombs said: "We have seen a significant rise in the school-age population recently. The council has a duty to make sure all children in Dorset have access to good quality education in buildings that are fit for purpose and that we are able to cope with future demand. The new designs for Damers and Bere Regis will provide this in an affordable way. I am pleased we can now move forward with building these two new schools for the local communities."
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