Peebles is the only high school in the Borders that does not have its own dedicated sports facilities.
Councillor Catriona Bhatia, Executive Member for Education, said: "As a Council we have delivered on our promises to invest in education. In addition to the three new high schools that will open this year, we are spending a further £40m in the next five years on schools.
"The Peebles High School sports centre will address a serious shortfall in accommodation for pupils in Peebles and provide a real benefit to our community. Kelso High School is also to see further investment with work to begin on a new classroom block this year."
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The new centre will comprise a four court sports hall, fitness suite, general purpose room, changing facilities, staff base and meeting rooms. The complex is being designed for community use and will include a secure community entrance to allow the school to be locked up and sports facilities used after hours. External facilities at the centre are still to be finalised but will include a full size all weather multi use games area (MUGA) and areas for track and field athletics.
Councillor Neil Calvert, Depute Council Leader (Finance) said the majority of the funding is coming direct from the Council's capital programme and over £200,000 is being provided through developer contributions from new housing schemes throughout Tweeddale.
"This is entirely appropriate as the whole of Tweeddale will benefit from this exciting scheme," he said.
An initial layout for the building has been developed and work will now begin on the detailed design by the Council's architects. After consultation with school and community groups, the process to secure detailed planning consent will begin later this year.
Peebles High School headteacher John Brown said: "This is great news for our school and will give a tremendous boost to our pupils, staff and the community who will be able to use the centre."
Construction work will begin on site in 2012 and be completed within three years.
Peebles High School is the largest high school in the Borders with almost 1,300 pupils.
