Southwark Council is starting work on plans to create an extra 360 new reception places at its primary schools over the next three years.
The authority said new schools could be established as part of the drive to create the extra capacity - which equates to “around 12” new entry forms, making up some £65 million of the total figure.
A further £2 million will come in emergency funding for extra places starting next year, while the remaining £12 million was for ongoing maintenance.
Councillor Dora Dixon Fyle, cabinet member for children's services, said Southwark was leading the way in preparing a programme of investment for schools, and working with them to create a robust plan for the future.
“With continuing investment in our schools, pupils are reaching new heights with attainments at or above the national average and still improving,” she said.
"The council has also guaranteed every child will have access to quality local primary schools, and parents able to choose from a community of outstanding schools."
Southwark said funding for the programme was expected to be made up of existing Department for Education grants for new places, future anticipated grants, Section 106 money from building projects, the authority’s own funds, and contributions from its Community Infrastructure Levy.
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched