The local authority in the London Borough of Hackney decided on 24 June to shut the St John's Nursery, despite acknowledging that it has a full complement of 45 children and is located in a prime site in the centre of Hackney.
The council is also planning to close the 40-year-old Springfield One O'clock Club in the disadvantaged area of Clapton at the end of this month.
Parents and carers, who say they were given no warning that it was about to be axed, are seeking legal advice on what steps they can take to prevent it.
Janine Booth, on behalf of the St John's Nursery parents, said their meeting on 16 July 'will not be a rally or a debate, but a working meeting to form a council of war on behalf of our children'.
Hackney council says that it will save 150,000 by closing the St John's Nursery in September, equivalent to half the full-year running costs. Its education committee has pledged to make savings of 209,000 in 2002/03 and 300,000 in 2003/04 in council nursery provision as part of the its efforts to curb a budget deficit.
In their report to the 24 June meeting, chief education officer Max Caller and cabinet member for education Ian Peacock said, 'St John's Nursery, although successful in attracting a full capacity of children and in a prime location, does not represent value for money and cannot be sustained, nor is there any room to increase its client base.'
Campaigners lobbying the meeting said there were 1,500 children on waiting lists for council nurseries in Hackney and that the borough could not afford to lose any more provision.
Meanwhile the nursery at Hackney's Old Fire Station has been taken off the list of assets to be auctioned off by the council.