Councillors yesterday approved a detailed planning application for the £16m Saltburn Learning Campus project.
The campus will provide a secondary school to replace the existing Huntcliff School buildings, and a primary school to replace the two Saltburn Primary School sites, at Marske Mill Lane and Upleatham Street.
The development on the current Huntcliff School site will create a modern campus, expanding on the existing facilities of a children's centre, leisure centre and multi-use games area.
It is hoped the first of two phases will start next month, with the building of the secondary school. The second phase - the primary school - is to be completed by September 2009.
Outline planning permission was granted in May last year, but Redcar and Cleveland Borough Council's planning committee was asked to approve a more detailed application yesterday.
During the meeting, residents spoke of their concerns over the increase in traffic and possible congestion caused by the access road to the site.
The campus is to take 1,000 pupils, both primary and secondary.
One resident of Marske Mill Lane told councillors she had suffered a loss of privacy by a long line of cars queuing opposite her home, which would be made worse with the new scheme, which included traffic lights in front of her house.
Councillor Philip Thompson said: "Looking at the plan, there are areas where I think we have difficulties in terms of highway safety.
"Given that the access to the school is also going to share access to the leisure centre and cricket and tennis club, my concern is the traffic volume. This is going to need considerable management.
"I would wish to see much more detailed proposals to how traffic is going to be managed. The junction with Marske Road and Guisborough Road is already an area that gives considerable potential for congestion."
Officers agreed to investigate the possibility of introducing double-yellow lines and traffic calming measures.
Saltburn resident Michael Morrissey raised concerns over the loss of a hedge in Guisborough Road.
He said: "Hedges are something we all take for granted. These school plans look good - an attractive building, well thought-out landscaping - but there is a two-metre high fence going to go all the way round the building. Some local residents have asked for the fence to be put inside the hedge."