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.
Hark! Claims school didn't allow Christmas carols to be sung "rumour" and "hearsay", says minister
Daphne Caine quizzed by Onchan MHK Julie Edge in the House of Keys
Education minister defends attempt to reopen schools for a half day on snow day
But Daphne Caine can't confirm if teaching staff will be paid for the day missed
Senior lecturer struck off nursing register after groping student
Henry Mutasa, formerly of Ramsey, 'demonstrated a repeated pattern of behaviour'
'Little data available' on number of employees earning the minimum wage on the IOM
Treasury minister says no assessments of businesses or costs have been carried out since October
Douglas high school reapplies for TT tents on school field
Ballakermeen hopes to also get planning approval to operate them during MGP