Birmingham's King Edward VI Foundation has revealed plans to sponsor one of the city's seven new business-backed academy schools.

The foundation, which includes the city's two top-performing King Edward independent schools and five grammars, is to submit an "expression of interest" in backing the academy to replace Sheldon Heath Community School.

However, it will not be providing the £2 million private money required under the academy rules towards creating the new school.

Instead, the Foundation and Birmingham City Council will look to businesses to stump up the cash towards the school rebuild.

Sponsors have already been found for five of the seven Birmingham schools earmarked to become academies.

Yesterday it was revealed that Birmingham charity Excell 3 had been dropped as a potential sponsor for the other remaining unsponsored school, College High in Erdington.

An announcement on College High and Sheldon Heath by Birmingham City Council is expected today.

David Holmes, a governor and spokesman for the King Edward VI Foundation, said: "The Foundation board wishes to take the first step on the road to sponsoring an academy at Sheldon Heath.

"This represents an exciting opportunity. Sheldon Heath has made significant progress in the last two years and there is a belief that the freedoms associated with academy status and the experience of the Foundation could assist the able leadership of Sheldon Heath to progress at an even faster pace and could strengthen the school in a number of areas."

Mr Holmes said clarification was being awaited on a number of "legal and technical issues".

He added: "The City of Birmingham and the Foundation hope that suitable financial investment can be found from the Birmingham business community to provide the additional academy trust fund of £2 million."

Earlier this year it was announced that Education charities Ark and Edutrust will sponsor two academies each - Ark taking Harborne Hill and St Albans CE, with Edutrust taking Heartlands High and Shenley Court - with a range of business partners.

A consortium led by the Black Country Richardson family is to sponsor Kings Norton High.

The academy programme has attracted controversy because it involves putting public assets in the hands of fee-paying sponsors who have influence over the curriculum. Critics claim it enables organisations with nothing to do with education to control schools.