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.
RNLI rescues person from 'vessel experiencing difficulties'
It happened just before 2pm
Review of chief executive role expected ahead of permanent appointment
Chief minister confirms review of CEO responsibilities will take place following Andy Ralphs’ sudden departure
Allinson: No further interest for gas exploration in Manx waters
But minister doesn't think idea is 'dead in the water'
Seven Island nurses to head to Liverpool for RCN Congress
Over 70 applications from the North-West region were considered
