The project was one of the first and biggest in a pipeline of projects set to lead the Welsh Government’s 21st Century school building programe.

Others included a £26m new Gateway to the Valleys school in Bridgend, a £27m new St Telios school in Cardiff, the £15m redevelopment of Swansea’s Morriston Comprehensive.

The decision to grant £34m in funding ends worries that the school would fall victim to the sweeping review of the 21st Century Schools programme in the face of deep spending cuts.

The project, which was originally costed at £55m, involves amalgamation of three special schools and St Cyres Comprehensive School to form a new educational complex in Penarth.

Contractors Carillion, Interserve, Laing O’Rourke, Leadbitter and Morgan Sindall were bidding the job as part of the region’s SEWCAP framework when it was put on hold.

The professional team consists of Arup, HLM Architects and Davis Langdon.

The Welsh Assembly Government will fund just under 70% of the project, with the Vale of Glamorgan Council funding just under 25%, at a cost of £12.3m.

The remaining £2.46m will be provided by other councils who will benefit from using the facilities.