Plans for the £150,000 hall at Edinburgh's Liberton High come as education chiefs push ahead with demolishing the gym where the 12-year-old dance-lover died in April. New space is set to be created by the £2.5 million extension of a separate building where most of the school's sports activity is currently held.
City bosses have also drawn up proposals for a memorial to Keane at the school, with an outline report due in August.
Consultation of the school community found the overwhelming view of teachers and parents was for the death-trap gym to be demolished before the next academic year.
Councillor Paul Godzik, education leader, said: "We have obviously had a number of meetings with the school community, we have listened to parents. We feel that the appropriate action now is to move forward with demolition of the gym."
The decision to flatten the gym comes after Cllr Godzik teamed up with the SNP's Jim Eadie, MSP for Edinburgh Southern, and Labour's Ian Murray, MP for Edinburgh South.
They presented a united front to the Scottish Government in a joint bid for funding to repair worn-down schools and prevent a repeat of April's tragedy.