Councillors have raised concerns for the future of the planned school which was agreed as part of multi-million development, off Churchil Way, that included hundreds of new homes in 2014.
Nottinghamshire County Council councillor Sybil Fielding, for Worksop West, has written to coun Tracey Taylor, chairman of children and young people's committee, because a planning application for the school has yet to be submitted.
Labour councillors claim money from a section 106 agreement, which was attached to the development being given the go-ahead, is at risk of being handed back to the developer.
But county council chiefs deny the claims and say plans for a new school are still in the pipeline – but were unable to say when it would be built.
Coun Fielding said she is “very concerned” at the situation.
She said: “Local people deserve answers. Notts County Council wanted a school on the Gateford site and agreed to build it.
“For several years I have reminded the county council that if this school is not built soon, then we risk losing funding altogether.
“I fear millions will have to be handed back to the developer who will simply pocket the cash and there will be no school at all.
“We all know there is real pressure for school places in Worksop - parents want choice and they deserve to have the primary school they were promised by Notts County Council.
“My real concern is that we are asking parents to transport children across Worksop.
“It's about time County Hall got on with the job and built the primary school they promised.”
District council leader, Simon Greaves said: “Notts County Council agreed to build a new primary school at the Gateford Manor development in Gateford.
"If no steps are taken to secure planning permission by the end of this year then money has to be paid back to the developer.”
Coun Keith Girling, chairman of economic development and asset management committee, said the claims over the section 106 money were “absolute made-up nonsense” and negotiations over the land the school will be built on are ongoing.
“This is absolute made-up nonsense designed to frighten and confuse local parents,” he said.
“The local councillor has had the process explained to her in great detail on more than one occasion and I am very disappointed in her allegation.
“The county council has not done a U-turn on the new school to be built at Gateford Park, Worksop.
“The council is taking appropriate steps in response to the obligation on the developer to provide land and a funding contribution for a new primary school, to ensure that the land and the monies for the new school are retained.
“Negotiations are currently taking place with the developer over the transfer of land for the new school.
“Once the land has been transferred, the council is expected to have up to five years to start the building of the new school.
“The council has yet to decide exactly when the school will be constructed and is in discussions to vary the legal agreement to ensure there is sufficient time for the school development to be progressed, not to cancel the agreement with the developer.”