Trustees who run Derby's controversial failing Muslim free school are believed to have been told to step down and let a sponsor take over – or face it being closed.

It is understood they are being given a chance to save Al-Madinah School by resigning as trustees, though if they decide not to move aside the Government will cut the school's funding and effectively force it to shut.

But the bureaucracy involved will mean it will take up to a year to close, leaving children in a school that has already been condemned by Ofsted as "dysfunctional", "in chaos" and "inadequate".

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