Erica Connor, 56, says the governors accused her of anti-Muslim prejudice and repeatedly questioned her policies on religious education lessons and assemblies.
She says there was a 'hidden agenda' among some governors.
High achievers: Erica Connor and pupils at New Monument School celebrate in 2001
For more than a year, she claims, she suffered rudeness and aggression at governors' meetings and challenges to her authority which culminated in a petition branding her racist and demanding her sacking.
The anonymous petition was circulated among residents near New Monument School, a non-denominational primary serving a mainly Muslim area of Woking, Surrey.
In papers lodged at county court, Mrs Connor claims Surrey County Council failed to stop the harassment.
She went on long-term sick leave in late 2005 before being permanently laid off and now lives in France, unlikely to return to teaching.
Papers filed at Haywards Heath County Court state Mrs Connor's problems began in 2003 when four new members were appointed to the governing body of the school, which she had run since 1998.
Two years previously she had been invited to a reception at Downing Street after the school was named the second most improved in the country for SATs results.
The first new governor, Paul Martin, 56, a wealthy Surrey-born businessman, proposed another with no prior connection to the school, Sofia Syed. The council appointed two more, including Mumtaz Saleem.
Mrs Connor alleges Mr Martin began to complain about the 'anti-Muslim conduct' of teachers and said there was 'anti-mosque, anti-Muslim prejudice' in the school.
He alleged that one teacher told children to throw away the Koran and another had said it was pointless for them to go to the mosque or learn Arabic.
But an investigation by Mrs Connor found no basis for the allegations. Several staff members were themselves Muslim, the former head says.
Mrs Connor, who is divorced, says she left a governors' meeting in tears after ' aggressive questioning' by Mr Saleem.
She says she emailed Surrey's director of education Paul Gray advising him 'there was clearly a hidden agenda for the new governors' and the staff were 'severely affected' but failed to get a response.
He then agreed to a review by consultants which concluded the governing body had become 'divided and dysfunctional' and cleared the school of racism, Islamophobia and religious bias.
Mrs Connor claims those findings were not properly acted on and Mr Martin's allegations led to several staff, including the deputy head, taking stress-related sick leave.
Mr Martin left the governing-body in June 2005. Shortly afterwards the anonymous petition was circulated and Mrs Connor told her union rep she felt 'desperate' and her health and family life were suffering.
The final straw came at the beginning of the next term when a second review - this time instigated by the council - concluded the school 'had not been responsive to the needs of the faith community'.
The entire governing body had already been disbanded and the following year the school was put in special measures by Ofsted. It was only taken off the failing list last year.
This week Mr Martin said he had no idea Mrs Connor had launched legal proceedings, adding: 'Good luck to her. It's all water under the bridge as far as I'm concerned.'
Mrs Syed was not available for comment. Surrey County Council declined to comment.
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