The old Noble's Hospital may become a new school.
Ballacloan Infants' and Fairfield Junior School will merge by April next year.
It will mean a new facility is needed to house the extra pupils.
Director of Education Martin Barrow has earmarked the site on Westmoreland Road to be the location.
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Discussions remain 'ongoing' over easyJet flight offerings
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CoMin rejects Steam Packet Statutory Board proposal
Ministers say arm's length operation was a 'key tenet' of operator's acquisition
Population growth 'slower than needed' to support Manx businesses
Treasury Minister says Island still needs to attract more people