The West London Free School is the first to sign a funding agreement with the government.
The parent-led school will be funded from central rather than local government. The school is expected to open in September and has already received 445 applications. Families who applied have started to hear if their child has got a place.
There have been 258 applications to set up free schools. Of these, 40 have now been approved to what is known as "business case" and nine have passed to what is called "the pre-opening stage".
A spokeswoman for the Department for Education said: ‘We are very pleased to confirm that the secretary of state has signed the funding agreement for the West London Free School, which plans to open in September this year.
‘Free schools will provide all children - not just the rich - the opportunity to go to a good school with great teaching, strong discipline and small class sizes.’
For more information please go to http://www.bbc.co.uk/news/education-12622055