Backworth Park Primary School will relocate from its current site on Station Road to the new housing estate Backworth Park, just south of the golf course.
The project will provide the school with a larger capacity, with extra space if itwishes to expand in the future.
It will also feature a playing field, something the school is lacking at its current location.
Headteacher Carol Crerar said: “The children, staff and parents are really looking forward to moving to a purpose-built Backworth Park Primary School, which will provide so many enhanced learning opportunities, especially for sports and outdoor provision.”
Mayor Norma Redfearn also paid a visit to the new school site with a group of pupils.
She said: “This new building will allow our staff to improve on the excellent support they currently provide for students and ensure that they have everything they need to reach their full potential in improved, more modern classrooms.”
Local team Mentor Construction of Killingworth has been appointed by Northumberland Estates to carry out the work, with the new building scheduled to open in September 2018.
Mrs Crerar added: “It is a most exciting time for the children in our small school to be involved in the shaping of their new premises and we can’t wait to see the plans become an actual reality over the next year.”