The decision follows an analysis of 13 different sites in and around St Andrews.
It was decided only two options were deliverable within a reasonable timescale; a new build at Pipeland or a remodelled and extended Kilrymont.
Following a vote it was agreed to build the new school at the Pipeland site.
Cllr. Alex Rowley, Leader of Fife Council, was speaking after the meeting with the Executive Committee.
"Opinion in St Andrews and the neighbouring communities is very divided on the question of where to build a new Madras College but one thing everyone agrees on is that the school cannot continue in its current split site arrangement," he said.
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"We are investing over £40m on this school so we want to make sure that we are building the best possible school for the money and I don’t believe Kilrymont can achieve that. It’s not the right site, not the right place and can’t accommodate the type of school we want to build.
"We cannot reject the chance to create a brand new school with state of the art facilities, designed to take forward learning and teaching into the future, just for the sake of a bit of land."
Cllr Bryan Poole, Spokesman for Education, Children, Young People and Families, commented on the decision to build on Pipeland, a greenbelt site.
He said: "I respect the views which are held in trying to protect the green belt and we have met with them and listened carefully to all sides of the argument.
"The school’s footprint would be 25% of the Pipeland site and most of that greenbelt site will remain green.
"We have exhausted all other possibilities with the exception of Pipeland and Kilrymont. We must remember that 93% of parents rejected Kilrymont. Pipeland is only place available for new build, with land at a reasonable cost."
(IT)
