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.
IOM Chamber of Commerce criticises wage policies
Report says public sector workers earn nearly £200 a week more on average than those in private sector
Specialist UK contractor to carry out safety checks at airport
Follows discovery of devices containing phosphorus last month
Custody officer caught with cannabis at courthouse
25-year-old handed suspended sentence
Nearly £16k spent on Red Arrows TT display
Department for Enterprise publishes figures in FOI response