Nine gurdwara leaders had proposed the school, which will open in September next year. The school, where only vegetarian food will be served, will be open to students from other two faiths too, but half its seats will be reserved for Sikh students.
The state pays for free schools and usually charities, parents and teachers usually set them up. These schools do not need follow the national curriculum.
The Sikh school is among 102 free schools cleared this week with a capacity of over 50,000.
Education secretary Michael Gove said there are 81 free schools and another 109 would be opened from September onwards.
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