Staff, pupils, parents and governors of Park Primary School in Gloucester Road held a celebration day to acknowledge their success in its latest Ofsted report.
The children gave enthusiastic presentations of their work and achievements.
Head Sue Binks, who led the school's implementation of the governing body's post-Ofsted action plan, said: "We're delighted with the results.
"In response to that report the school will produce an action plan which is done by myself, the staff and governors of the school."
The report praised Mrs Binks: "The leadership and management of the school are strong. The headteacher provides clear and decisive leadership.
"She understands the strengths and weaknesses of the school and how improvements need to be made."
It also recognised improvements were being made across the curriculum: "The attainment of the pupils on entry to the reception class is broadly average.
"They make good progress both in the lessons and over time. By the end of the foundation stage most of the pupils are likely to achieve the early learning goals across the areas of learning."
It continued: "The pupils' personal and social skills are developing well. They understand the routines of the class and school, and are acquiring a good degree of independence as they carry out their work."
Staff plan to continue improving standards by focusing on writing, science and personal, social and health education.
Mrs Binks added: "Park Primary School will continue to build upon the good practices now recognised by Ofsted and will ensure that each pupil has the opportunity to fulfil their potential."
Sue Hawkins, chairman of governors, said: "Over the course of the two years since Special Measures was imposed the school has had over 70 separate visits from specialist subject inspectors along with regular visits from Her
We are all confident that everyone involved in Park Primary School has the drive and the commitment to ensure the school achieves its goals for our pupils."
Hampshire County Council's area school improvement manager Phil Dickinson said: "The county council has been working very closely with Park Primary School to address the areas identified by Ofsted for improvement.
"I am very pleased to see the achievements have been fully recognised with the school being removed from special measures.
"We will continue to support Park Primary as its good progress is maintained."
Park Primary was put on Special Measures in November 1999 after inspectors said there was an unacceptably high level of unsatisfactory and poor teaching.
Standards were well below average in English, mathematics and science.
The report said the school's weaknesses "far outweighed its strengths".