Inspectors visited Holy Trinity Church of England Primary School in Middleton Road, Oswestry, in January for their third monitoring visit since the school was placed in special measures in February 2013.
In her report, chief inspector Linda McGill, said: "Having considered all the evidence, I am of the opinion that at this time the school is not making enough progress towards the removal of special measures.
"There is a growing proportion of teaching that is reliably good. But some still requires improvement, which means that pupils do not always make the progress they are capable of in lessons and over time."
However, Ms McGill said some progress has been made and the changes have been positive.
The report says: "Despite the fact that the school is not yet where it should be on its journey towards the removal of special measures, there are encouraging signs of improvement.
"The appointment of the new headteacher, in conjunction with the secondment of two experienced and skilled teachers, adds considerable strength to the leadership team. It has also served to boost morale.
"Throughout this inspection, members of staff spoke of a renewed optimism and confidence. It is clear that the climate in school has changed for the better. Appropriate action is being taken to deal with remaining weaknesses, both in leadership and teaching."
Ann Hartley, Shropshire Council's cabinet member for children's services, said: "Though the Ofsted inspector has identified room for improvement at Holy Trinity, I'm pleased that she has found that appropriate action is being taken to deal with the remaining weaknesses."