Gidea Park Library, one of three in the borough to be closed last month, will become the temporary home of construction firm Galliford Try.
It was contracted by the council to develop the new Balgores Special School, a dedicated facility for children with special educational needs (SEND).
The purpose-built school, with 300 spaces available, is expected to open in September 2027. It was first approved in late 2023.
Deputy leader Gillian Ford said moving Galliford Try in would “alleviate the holding cost and reduce preliminary cost in the school construction contract” at a meeting on March 26.
In October, the cabinet agreed to pay Galliford Try £2million to draw up plans for the school.
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All told, the new school is expected to cost around £38m, but the council says it will save money in the long-term by reducing out-of-borough placements.
The council previously said it hoped to see the library become a care facility to complement the school.
Future uses of South Hornchurch Library were “still being explored,” she said.
She said the library needed around six weeks to clear the building of stock but the options “should be clearer” by mid-May.
The Havering Residents Association councillor added that she had recently received a proposal for the building from a “group established in Harold Wood” and would be responding “in due course”.
The closure of the libraries prompted heavy pushback from residents and opposition councillors, who said it would “hit the poorest and most vulnerable the hardest”.
Councillors previously said they were in early talks to continue library services in Harold Wood through community centres.