Almost £40m will be injected into schools in the Amble area after a switch to two-tier education was agreed.
Northumberland County Council had pledged the cash as part of its schools improvement programme, but wanted to ensure that the future of education in the Coquet partnership was decided before committing to such a significant expenditure.
The cabinet's final decision on Thursday following significant public consultation, in which parents, staff and stakeholders overwhelmingly backed a move from three-tier to two-tier education.