TWO companies are in competition for the £35m contract to rebuild Southampton’s new city academy schools.

The two new secondary schools, sponsored by Christian charity Oasis, opened last September using the buildings of the four schools they replaced.

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Balfour Beatty and Carillion have made the council's shortlist after four firms submitted tenders to consolidate the academies on two sites with new and improved facilities. Kier and Wilmott Dixon were unsuccessful.

Oasis Academy Mayfield will be relocated from its Woolston school site to its other Grove Park school site in Sholing in a £15m revamp and part new build.

Council chiefs plan to move Oasis Academy Lord’s Hill from its Millbrook and Oaklands school sites to a new £20m building at Five Acres on the Lordshill Recreation Ground.

Balfour Beatty and Carillion will now work on outline plans. The preferred bidder is expected to be announced in the autumn of 2010.