The state is forcing the city to either relinquish control of a failing Bronx middle school or close its doors for good.
Junior High School 162 in Mott Haven is the first city school ordered to either close, merge or be given to an outside manager under the state's new receivership program.
The school is located off of East 149th Street and St. Ann's Avenue.
A report shows it's the only school on the state's list of "persistently struggling schools" that is not improving.
The state program began last year and allows an outside manager attempt a turnaround by giving them control over staffing and finances.
Both the mayor and the city's schools chancellor have spoken out against having outsiders.
Meanwhile, the city's Education Department says "doing what’s best for kids" is its top priority.
The state has given the city 60 days to make a decision about the school.