a new nursery block costing up to £200,000 has been earmarked for Ledbury Primary School.
Funding will come from £600,000 of unallocated money in Herefordshire Council's budget.
Building work to replace the existing mobile classroom could start this year and the block could be opened by September 2005.
George Salmon, the council's head of policy and resources, said: "Essentially, it will be good, up to date, quality provision."
The number of nursery places at the school will not increase. Sixty places will be on offer, with each child attending part-time.
Under new government regulations, from April every child in the UK aged between three and four years of age is entitled to five free nursery sessions a week, with each session lasting two and a half hours.
Consultants Owen Williams have already started designing the new nursery, which will be built next to the foundation stage class-rooms.
Because Herefordshire Council is considering other building projects - at Kington Primary School, Fairfield High School and Weobley High School - there is a possibility that the total budget of £600,000 could be exceeded and cause funding problems.
Mr Salmon said that final design costs would have to be checked against the availability of money.
However, he said: "The principle has been established. My feeling is that it will happen."
One possibility, in the event of a budget shortfall, is to phase all the projects in, so that other capital could be sourced. The redundant mobile classroom could then be offered to a volunteer playgroup, such as Ledbury's Mucky Pups, and moved to another location.
Mr Salmon said: "We're aware that several local volunteer playgroups do face accommodation issues, so we could solve a problem for one of them."
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