A crumbling school dating from the 1950s is to be demolished and replaced with a new £6m building.
Cwm Ifor Primary School, in Penyrheol, will be knocked down and re-opened by the 2012/13 academic year.
On Tuesday, members of Caerphilly County Borough Council’s cabinet gave the scheme the go-ahead.
The Welsh Government is providing funding of £4.04m with the remaining funding coming from the council.
Cllr Allan Pritchard, leader of the council said: “I am delighted that cabinet have given this excellent scheme the green light. This brand new school building will provide a wonderful learning environment for our youngsters, in fit for purpose facilities for the 21st Century.”
Cllr Phil Bevan, cabinet member for education, leisure and lifelong learning, said: “This project forms part of our wider commitment to providing first class educational facilities for generations to come, and I greatly look forward to seeing this project come to life over the coming months.”