Local Government, Local Enterprise Partnership and Homes England have awarded £8 million to the project, which will see a new facility built on Carrington Street.
The school will have capacity for over 300 primary school children, aged between five and 11 and with an onsite nursery with 39 places for pre-school children. Work is expected to begin on the school, pending planning permission at the start of next year and to be completed by 2021.
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This project also forms part of the wider £100 million Castleward Urban Village development which will see new homes and commercial units delivered over the next few years.
Cllr Chris Poulter, Leader of Derby City Council said: "This is fantastic news for the development and will help to encourage young families move into new developments within the city centre. The provision of the school was the key to enable the completion of the wider Castleward scheme.
"The regeneration at Castleward showcases our ongoing transformation and commitment to our City Centre Masterplan to build 1,900 new housing units by 2030.
"I'd like to thank Homes England for their investment which has made a significant contribution to the funding of this new school. The Secretary of State, Robert Jenrick MP, recently toured the development and endorsed the scheme as a really good example of the type of inner City place making and regeneration necessary to create new urban communities."
(CM/MH)
