Proposals for Greenfield Community College and Sunnydale Community College to become one school are out for public consultation.
Both are currently run by one governing body and are just over two miles apart with Greenfield in Newton Aycliffe in Sunnydale in Shildon.
Durham County Council proposals would mean the closure of Sunnydale but pupils would continue to be taught on both sites.
If agreed, Sunnydale Community College would close as a separate school on December 31 2014 with the enlarged Greenfield Community College starting from January 1 2015.
Sunnydale was judged to be inadequate with serious weaknesses after an Ofsted inspection in April this year. Although it has capacity for 954 pupils there are currently only 400 enrolled, meaning 57 per cent surplus places.
Greenfield was highlighted as a good school by Ofsted in 2012. Most recent GCSE results show Greenfield to be above the national average and Sunnydale below.
Carol O’Neill, head of education, Durham County Council, said: “We have been working closely with both schools to look at the best forward in raising educational standards. Having considered the need to act quickly following the current position of Sunnydale in terms low attainment and progress, these proposals will ensure that students in this area of the county will have wider opportunities for educational improvement
“The single Greenfield school would make use of accommodation on both sites to provide improved curriculum provision.”
The governors have agreed that the Headteacher of Greenfield will be the Executive Headteacher across both schools from September.
Parents from both schools have been sent detailed consultation documents  and response forms for views to be received by July 25 2014. A series of meetings have been scheduled for both schools from next week and there will also be community meetings at both schools.
Comments can also be sent to schoolorganisation@durham.gov.uk or complete the response form online on the education and learning section of Durham County Council’s website www.durham.gov.uk
Further details: www.durham.gov.uk/consultations