The Al-Madinah free school in Derby must address nine action points set out by the education minister by today or face a funding termination.
The Education Minister Lord Nash has said the points must include advertising for a new headteacher and setting out how the school will be welcoming to students of all or no faith.
Ofsted previously branded the school 'dysfunctional.'
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30 year old Christian Bagley suffered two stab wounds as he walked under the Hunderton Bridge in Hereford 2 years ago.