Pave Aways will construct new facilities at Harlescott Junior School in Shrewbury to enable nearby Sundorne Infant School and Nursery to move in at the same site.
Subject to planning permission, building work is expected to start in early 2021.
Pave Aways managing director Steven Owen said: “This is a flagship project for Shropshire Council and we will work closely with the local authority, Shropshire Council’s Property Services Group, school leaders, staff, parents and pupils to deliver the vision of a carbon neutral building that is future fit.
“As a local business with employees and a supply chain rooted in the county, this contract will provide a substantial economic boost for Shropshire along with valuable training and work experience opportunities. Several of our team, including our commercial director, attended the junior school so it is a project very close to our hearts.”
Pave Aways is working with MHA Architects.