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17 March 2010, 06:00 | Updated: 17 March 2010, 10:17
St Neots Community College and Longsands College could join up as a federation from September.
It would mean both schools are run by a single set of governors, however each school would receive its own budget.
A public consultation has just opened into the proposal which, if approved, would take effect from the 1st of September.
St Neots Community College was placed into special measures by government inspectors Oftsed last year.
It is hoped establishing a foundation between the two schools would raise standards at St Neots Community College, and allow Longsands College to continue being successful.
Cambridgeshire County Council says a federation is not a merger, but more of a partnership, with both schools retaining their individual identities.
Tony Hyde, chair of governors at Longsands College, said: "Having looked at all the options in some detail, we believe that the federation model respects the individual identities of the two schools while offering the opportunity not only to address current issues but also build a better future for students across the town."
Scott Preston, acting principal at St Neots Community College, added: "It is important for all members of our school community to have clarity in where the school is going.
This consultation on the federation between the two schools in St Neots marks an important stage in this process."
The consultation document is available to view on either of the schools' websites.
The consultation runs until the 26th of April, and a decision on whether or not to proceed with setting up a federation will be made by both schools' governing bodies in early June.