The proposals, made following the Pitlochry Locality Asset Review, will see £8.7m invested in the school to create a community campus with a gym and four court games hall.
In addition, opening hours will be extended to allow greater access to leisure services operating at the school.
The plans also include supporting the Community Asset Transfer of Cloichard Depot and Pitlochry Town Hall to local community groups and redeveloping redundant council properties Tyree House and Atholl Leisure Centre for around 20 affordable housing units.
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The proposals followed extensive community consultation where residents discussed their priorities for Pitlochry, including the creation of more affordable housing and better use of council buildings.
Perth and Kinross Council's Strategic Lead for Property Services Stephen Crawford said: "We have been engaging with the Pitlochry community for nearly a year over their priorities and how we make best use of our buildings in Pitlochry to support those aims.
"This will be a significant investment in Pitlochry High School to create a new community campus like those operating successfully elsewhere in Perth and Kinross, such as those in Perth, Crieff, Kinross and Aberfeldy.
"We hired independent consultants to understand the current and future accommodation needs of the school to make sure pupils and staff will benefit from new science labs, technology workshops and home economics facilities, as well as the increased space for sports.
"Using the under-utilised space the consultants identified, the school together with the capital investment we are planning will benefit both the school and the wider Pitlochry community."
Detailed design work on the new community campus will begin soon.
