Only you and your daughter can answer the question. We don’t know her and her needs like you do. You know her well even if you have been in denial about her ability to cope.
Your daughter is already about two years behind her classmates and relies on them to support her with her school work.
She is aware that she struggles and you say she thinks she is stupid.
She is anxious about going to school.
Your daughter’s friends are developing different interests.
She is 10, so not far off leaving primary and going up to secondary school.
Secondary schools are bigger and the classes often streamed. They will almost certainly be set for core subjects like English and maths. Your daughter is very unlikely to be with any of her friends in classes at secondary school.
The local school is excellent.
Is this in relation to academic results? Or is it excellent at developing students socially as well? Can they help her to develop her self esteem.
What is it’s policy on children with special needs?
What is their special needs provision and support like?
What does a day look like for a student with needs similar to your daughter’s? Can that experience be considered excellent?
Would she be happy there?
What is the provision like in the special school?
What support will she get?
What do they expect her to achieve there both academically and socially? Will they help her to develop her self esteem?
Are there students in the class that she could be friends with?
Would she be happy there?
Remember that at the mainstream excellent school she will be one of the least able. At the special school she will be one of the most able.
Only by putting aside your previous assumptions, honesty thinking through the consequences of your daughter going to the mainstream secondary school, then comparing that to the special school experience will you really be able to work out what is right for your daughter.