DEVELOPER Vinci Investments is named today as the great hope to build a new school to replace the cramped Durham Road Schools in Newport.

Pupils, teachers and parents were first told the junior and infants schools were "priority rebuilds" over 15 years ago.

Since then conditions endured by 655 pupils have slid to a level branded "Victorian" and "unhealthy" by inspectors, and at Easter a ceiling at the junior school collapsed.

A major row broke out over the proposed site of the replacement school at the former waste tip, The Glebelands. And funding for a new school has also been fraught with problems and in May talks collapsed with the first choice of bidder for the Private Finance Initiative (PFI).

Now the announcement from Newport council that second choice Vinci Investments is their 'preferred bidder' is the next step in the battle for a new school.

Sir Harry Jones, leader of Newport council, said: "This is a step in the right direction.

"We can now look forward to taking this project further with a new contractor willing to commit to the city's needs."

David Bowler, managing director of Vinci Investments, said: "We look forward to sharing our experience and expertise in PFI to the benefit of Newport."

The details of any more concrete agreement have yet to be worked out, and the council is unable to say when a new school may be completed.

Junior school head teacher Jeff Beecher said: "As the new head I was supposed to be moving into a new school today and that has been disappointing for everyone. But we are delighted this is more positive news than we have had."

Outline planning permission was granted for both schools to be housed at the Glebelands. Figures in 1998 suggested it would cost £11m.

But the controversial site is a former landfill area and protesters say it is unsafe - a claim denied by the council, who say remedial works can be made safe.

In the next few days contractors will start making environmental assessments of the site, as planners require.

John Martin, chairman of the Glebelands Action Group, said: "We need a school but this is in the wrong place."