City Department of Education lawyers are furious that a “biased” arbitrator cleared a Manhattan teacher of groping two students, The Post has learned.

Two former female students of Cascade HS claim Michael Canick grabbed their buttocks in the 2014 school year, and the schools special commissioner recommended that Canick be fired.

But arbitrator Doyle O’Connor ruled in favor of Canick while deriding his accusers as “fairly hardened former flunk-out urban high-school girls,” court papers say.

DOE lawyers filed suit to have the decision rescinded and O’Connor removed from the case.

“The charges against me were false,” Canick told The Post.