The statement was made in a report on the future of the former Monash Primary School site in Notting Hill.

The report, which was mysteriously withdrawn during the March 11 council meeting, stated that the DoE's primary objective was to "achieve maximum financial return" by seeking to rezone the land for residential development, despite school groups showing interest in the site.

"The primary objective of the process adopted by the department would appear to be designed to only achieve maximum financial return," it stated.

Monash Mayor Paul Klisaris said the council was aware the department had "a policy of maximising return on any surplus land".

He said open space was a "crucial issue" for Notting Hill residents, who had used the site for recreation.

Notting Hill Community Association spokeswoman Marian Quartly, who prefers a school to remain on the site, said the council's statements were significant.

"The department could sell the school still zoned as educational, but it would not get enough money for it. By zoning it residential, they can sell it at market prices."

Two years ago, XJS Chinese Language School told the Journal the school's bid to lease or buy the site was ignored by the DoE. A spokeswoman said the school could not afford the site at market prices.

A DoE spokeswoman said the site was considered surplus to the area's educational needs.

"The educational needs of the students in the area are being met primarily through Brentwood Secondary College and Pinewood Primary School, although there are other schools in the area with capacity to cater for students."

She said the site was offered for sale to Monash Council and other government departments, and would now be for public sale.

"This process is in line with government policy on the disposal of land."