All secondary schools in England are being told to increase the number of pupils gaining five good grades as part of a proposal to boost education standards.
A White Paper being published today will outline how schools will be targeted for failing to ensure at least 35 per cent of teenagers gain five A* to C grades including English and maths.
All schools will also be expected to ensure that pupils make the necessary progress between the age of 11 and 16.
Schools failing to hit the mark could be turned into independent academies under new leadership.
The move represents a dramatic toughen up of minimum floor targets imposed by Labour.
It is expected to place the Government on a direct collision course with unions who have complained that the use of crude targets undermines teachers and punishes schools with large numbers of deprived pupils.
But Michael Gove, the Education Secretary, said: "I don't think it's right that you can have a school where two-thirds of children aren't getting five basic GCSEs.
"Our approach is going to be more sophisticated than the last government's.
"If a school has a really tough intake but it is still making tremendous progress, then we won't be classifying it as underperforming. We will recognise the unique circumstances of every school."
Where schools are found to fall below standard, "outstanding headteachers" would be brought in to help "raise the bar on achievement".
But Mr Gove said schools would not be categorised as "failing", insisting they would simply be termed "underperforming".
The measure will replace a target introduced under the last Labour government for schools to have more than 30 per cent of pupils achieving five C grades, including the basics.
There is currently no target for primary schools. But it is thought that those failing to ensure at least 60 per cent of pupils pass English and maths Sats tests could be targeted.
Pupils are also expected to make “two levels” of progress between the ages of five to 11 and then 11 to 16.