Work on a new multi-purpose hall at Jannali East Public School is expected to start early next year.
The new hall will cater for before and after school care, as well as school activities.
The state government has released a design of the project, which was promised at the 2019 election.
Miranda MP Eleni Petinos said the hall would include a canteen, sports storage, toilets, and out of school hours care facilities.
The Department of Education will look at opportunities for community use and sharing some of the facilities with neighbouring schools in the area.
Education Minister Sarah Mitchell said plans would be shared with the community.
Ms Mitchell said the Education Department was working to complete detailed hall designs and initiate a tender process before the end of this year, with construction scheduled to start in early 2021.
A new multi-purpose hall at Engadine High School was also promised at the 2019 election, and a design for that project was also released this week.