A mystery benefactor is prepared to put £2 million towards starting a new city academy, formed through a merger of two schools.

Brighton and Hove City Council has been approached with the proposal by the United Learning Trust, an independent agency which sets up city academies across England.

The schools in question are Whitehawk Primary School and East Brighton College of Media Arts (Comart).

Government policy is that start-up money must be available for each academy of £2 million, which in turn attracts £8 million of public money.

The benefactor is a successful businessman who wishes to remain anonymous. He has been in touch with the trust.

A combined academy would be for pupils aged between three and 16. Discussions are planned with the Learning and Skills Council about further education. The academy would be independent but Government funded.

There would be a single school but with both existing sites in use. Some of the older primary school pupils could use newly renovated rooms at Comart.

This would leave space at the primary site for developing other services such as a children's centre and family support services.

Schools councillor Pat Hawkes said: "This is an exciting idea aimed at getting a better educational deal for people in East Brighton.

"Both schools are currently improving and the creation of a city academy would be consistent in many ways with our vision for further improvement."

The trust has to tell the Government by the end of this month if it wants to go ahead with the academy.

If the Government backs the idea in outline, local consultation would take place in the new year.

The earliest that the City Academy could open would be September 2004. Comart governors have already indicated support in principle.