Grimsby has one of the UK's highest rates of teenage pregnancy
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A school for teenage mums is to open in Grimsby in 2006 - two years after the old one closed amid a funding crisis.
North East Lincolnshire Council says that now it has stabilised its finances it plans to develop a "bigger and better" Young Mums Unit in the town.
It has started looking for suitable premises where girls would receive at least 25 hours education a week.
"It is about giving young mums an equal opportunity to reach their academic potential," said a council spokesman.
'Wonderful news'
Steve Hocknell, the council's cabinet member for learning and culture, said: "This is wonderful news that we're developing this new facility which, in many ways, is bigger and better than before.
"The council has faced some well-publicised challenges. But, with the achievement of more financial stability, we're starting to see real investment in public services."
The new unit will also cater for pupils not attending school for medical reasons.
It will include creche facilities and have permanent, rather than casual, staff.
The council used to run an educational facility for young mums and pregnant schoolgirls at Alice House, Grimsby.