Springfield Properties has revealed that it is prepared to partially fund a new school as part of its proposed Western Gateway development on the outskirts of Dundee.

A revised application for the remaining 365 homes in the Dykes of Gray village, has now been approved by Dundee City Council after it was initially rejected due to concerns with education.

Springfield has agreed to pay a roof tax to the council for each completed home on the development to be used for a new primary school and also identified three potential locations near the Dykes of Gray village where this could be built.

Local reports suggest that the contribution could be as much as £3 million.

Springfield Properties chairman, Sandy Adam, attended the planning hearing and said: “We are pleased with the decision to approve our Dykes of Gray planning application. We listened to the feedback from Dundee Council in December and amended the points of concern in the application presented yesterday.”

He added: “We are planning to build a range of two, three, four and five bedroom homes, all designed to complement the area. With planning approved, Springfield is determined to have a sales office on site as early as June 2015.”

According to the Evening Telegraph, Springfield has submitted an application for a further 100 houses on land at the north east of the new scheme, in addition to the 595 new homes already approved.

NHS Tayside is to sell off a parcel of land to the south of Liff Hospital to enable the creation of the four- and five-bedroom luxury properties.

According to the newspaper, the developer has worked out that its contribution towards the school for a total of 695 houses would add up to £3,252,600. This is based on a cost of £4,680 for each household.

The developer will also create a village centre, featuring retail and food and drink businesses, play spaces, landscaping and other infrastructure, including road improvements.