The state government has committed to removing all known asbestos from Newcastle East Public School.
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In response to questions asked in budget estimates, the government said the asbestos would be removed from buildings by the end of 2020.
In addition, artificial turf will be laid on already-encapsulated asbestos in the school playground.
The calls for asbestos removal came after it was revealed friable asbestos had been found in the school's heritage building during renovations over summer.
But parents did not learn about the discovery until the first day of term, prompting some to remove their children from the school.
Education Minister Sarah Mitchell subsequently apologised for her department's handling of the matter at a meeting with parents.
Some parents have since called for an independent audit of what was known about the asbestos and the process used to remove it.
In its response to budget estimates questions, the government revealed $1.4 million has been spent on removing asbestos from the school to 25 March.
Almost $150,000 had been spent on replacing potentially contaminated library books and sports equipment.
"This is a big win for the Newcastle East school community and after the start to the year they had it will be very welcome," Newcastle MP Tim Crakanthorp said.
"I need to thank Minister Sarah Mitchell for acting on mine and the parents' calls to have the known asbestos removed from this school.
"Ultimately what we needed was some peace of mind for this community and I'm thrilled that the parent body and I have been able to work together to achieve this."
In addition to the lost teaching resources, a collection of irreplaceable artefacts documenting the school's history were also destroyed.
They included hundreds of photos and documents, such as punishment books, school registers and correspondence, that had been collected over generations.
An etching of Newcastle as it appeared in the early 1800s and a letter from William Cowper to Governor Macquarie establishing the school were also lost.
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- Tim Crakanthorp files notice of motion calling for all asbestos to be removed from Newcastle East Public School
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