The county council has said it cannot justify spending the extra funds to rebuild a new facility at Rothbury First School – but claims it would not cost £1million.
A spokeswoman said: “This has become one of our top priorities for repair/refurbishment among our schools.
“But the council has a limited budget to cover the extensive range of backlog maintenance issues across all of its 170 schools and the council needs to demonstrate best value for money.
“The full cost of the project is yet to be determined, although the indicative cost of the proposed refurbishment is in the region of £400k while demolition and a rebuild would be in the region of £725k.
“The current building is structurally sound and under those circumstances the council could not justify spending the additional £325k for the marginal additional benefits a rebuild would provide.”