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Hendre Infants and Hendre Junior School, which sit on opposite sides of St Cenydd Road, in Trecenydd, will be allowed to “amalgamate” and strengthen ties.
Caerphilly County Borough Council’s cabinet members approved the deal at a meeting on Wednesday April 16.
Officers said the merger could help both schools tackle surplus pupil places and contribute to their financial sustainability.
Senior education officer Paul Warren also said the amalgamation could help the new school share experience and skills.
“A sharing of expertise is going to build the overall effectiveness of the school,” Mr Warren explained.
There will also be a “continuity of learning” between key stages, which could “make all the difference for these pupils”, he added.
Cllr Sean Morgan, who leads the local authority, described the proposed amalgamation as “very amicable”.
“Both schools want to do it”, he noted, adding he hoped the merger will provide “positive outcomes for pupils”.
Each school will remain at its current home when the amalgamation comes into effect in September.
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