A stoush between a  high-profile hotelier and a school has reignited after he offered money for the school to withdraw its objection to a pub being built 135 metres from its grounds.

Peter De Angelis has vowed to lodge a fresh development application with Liverpool Council next month to redevelop a motel on the Hume Highway, at Casula, into a pub serving food and with poker machines.

His original proposal for the south-west Sydney site was defeated last year in the face of community opposition, including a petition signed by more than 700 Casula Primary School students that was organised by year 6 pupil Alexander Tran.

But Alexander's mother, Jacinta Tran, says the Casula Parents and Citizens was horrified to learn the school had recently received a letter from Mr De Angelis' company offering it money and infrastructure, such as new lighting for the grounds.