The Isle of Wight Council has agreed to sell the land to developer National Pride to provide much-needed affordable housing for the Island.
The site closed in 2011 and was subsequently used by Sandown Bay Academy as temporary accommodation but is no longer needed.
Due to vandalism on the site, it was decided to demolish the former school buildings ready for redevelopment.
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The proposed provision of new housing will create Island jobs and contribute towards the council’s aspirations to reduce poverty, as well as its regeneration ambitions, sustainable economic growth and skills development through construction apprenticeships.
Consultation with Sandown Town Council and The Bay Church of England School raised no objections.
Sharon Betts, the council's Director of Corporate Services, said: "We are delighted to agree a sale of this substantial brownfield site to National Pride to deliver much needed new housing for the Island, including affordable housing.
"The former Sandham Middle School site has been ripe for redevelopment for some time, and the fact that National Pride is such an experienced developer gives the council every confidence that the housing will be delivered as quickly as possible."
