Amsterdam city council has until August 1, 2017 to find a building which can house a new Islamic secondary school, the Council of State said on Wednesday.
In total, the school needs to have space for 186 first year pupils, the council said in the ruling, which ends a long and complicated legal process.
A spokesman for the city council said officials are now examining the ruling and will decide what to do next.
There has not been an Islamic secondary school in Amsterdam since the ICA was closed down in 2010 because of poor standards.
After the ICA closure, a foundation was set up to establish a new school, which won education ministry approval. That means the council has to find a location for the school within five years.
The foundation says the city council has been dragging its feet, forcing it to take legal action.
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