Churchfields Schools is to lose its Performing Arts College specialist status - and is set to miss out on £600,000.

The school in Walcot, Swindon - one of the first in the town to be granted specialist status - has vowed to appeal against the decision.

The Department for Education and Skills rejected a bid to renew the status, and the school could lose vital funding over the next four years.

Headteacher Steve Flavin says the school, which became a performing arts college in 1999, is confident the school can overturn the decision.

Schools must submit a detailed bid to gain specialist status, which lasts for four years, and after that period each school must reapply for another four years.

Following a visit to the school on March 13 by a government school inspector, an independent panel at the DfES has decided not to renew the status.

That status has allowed the school to open fully-equipped dance and drama studios and financed a string of workshops with professional dance, music and theatre groups.

The school came out of special measures in November last year and in August its GCSE results shot up by 50 per cent.

Mr Flavin says Churchfields is not a failing school and he has enlisted the support of South Swindon MP Julia Drown.

He said: "The news is obviously a disappointment to the school and its community as the funding provided many valuable opportunities in the last four years.

"Our success in examinations and the friendly and collaborative relationship we have with our local community are just two examples which testify to the fact that Churchfields is a self-improving school."

Ms Drown said: "I have raised my concerns with the minister and I know he wants the school's appeal to be looked at thoroughly and sensitively.

"No-one can fail to be impressed at the improvement we have seen in the school."

Cledwyn Davies, Swindon's assistant director of education, underlined that the school had not been stripped of its specialist status but had so far been unsuccessful when it reapplied.

He said: "The head, governors, staff and students will be disappointed. It's a great shame considering the school has just come out of special measures."

Cait Mellow, of the DfES, said: "Where schools applying to renew their specialist designation cannot demonstrate that they meet the criteria they will not be re-designated."

Laura Keogh, 16, from the town centre said: "I think the school has made great use of performing arts, I have been glad to go to a school that specialises like this."

Kirsty King, 15, from Park South said: "I have had so many opportunities to do things I enjoy that I would be really disappointed if we missed out."