The academy will be an enormous boost for the area

Judith Mayhew

Robert Coomber, chief executive of Southwark Council said: "This is absolutely the right decision for the people of Bermondsey.

"The children need a new school and this is the right location to best serve the needs of the local community."

Southwark Council had given approval for the academy in January.

However, the decision was then blocked by Mayor Livingstone because it ran against his policy on open space.

Judith Mayhew, chairman of policy and resources committee at the corporation of London said: "The academy will be an enormous boost for the area.

"The delay has set back the timetable but we are now pushing ahead with our efforts to admit the first year seven intake in September 2003."

The new school is intended to specialise in business and enterprise.

The Corporation of London has committed �2m to the building costs with the rest of the funding provided by the Department for Education and Skills (DfES).