Land at Gillieston Heights has been earmarked for future schools

The sites are just over a kilometre apart. One is within The Loxford subdivision, off Cessnock Road, which had its first stage approved by Maitland council in June.

The other is alongside the St Nicholas Early Education Centre in Redwood Drive.

The Loxford development director Shane Boslem said the 7.6 hectare site is large enough to accommodate a kindergarten to year 12 school.

A spokeswoman for the Diocese of Maitland-Newcastle said vacant land on the St Nicholas site may be used for a primary school in the future.

She said the Diocese wanted to expand its education facilities in the region and the Gillieston Heights area was expected to grow significantly.

"With that, demand for local Catholic schooling is likely to increase," she said.

"The Diocese is actively monitoring the growth in this area and will respond accordingly."

The NSW Department of Education has chosen to redevelop Gillieston Public School instead of building a new school in the suburb.

It said School Infrastructure NSW had advised that was the preferred option in the short to medium term and the redevelopment would increase the school's capacity as the community grew.

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The department would not say whether it was in talks with The Loxford developers The McCloy Group and The Stevens Group about its large school site.

A spokeswoman said the department did not disclose the discussions it had with companies and it was not limited to engaging with any two companies.

Parents at Gillieston Public School have been calling for improved facilities and more room for students for years.

The department spokeswoman said enrolment growth at the school was currently being accommodated in permanent and demountable teaching spaces.

She said planning for the redevelopment was underway and a range of experts had been engaged to "ensure taxpayers get the best value for money".

"Planning includes identifying the scope for new facilities and providing additional capacity to meet projected enrolment demand," she said.

Planning at the Loxford site, which will also include a town centre, supermarket, retail shops and recreation space, is underway and will be submitted to Maitland council for approval once it is finished.

"The site will support the regional centres of Maitland, Kurri Kurri and Cessnock due to the economic growth from employment and housing across the site," Mr Boslem said.

"Given the scale of the full development of the site, the development will also support the provision of a local neighbourhood supermarket and supporting retail together with a new local school."

The subdivision will also create a flood-free road link with Cliftleigh that will provide access out of Gillieston Heights during a 1-in-100 year flood.