West Mercia Police say they are treating the attack involving pupils from the Charlton School, Wellington, as a hate crime. The victim is a member of the Sikh community.
The school said it is co-operating fully with the police and has taken swift action itself.
A video of the incident, which took place on November 13 has circulated online leading to outrage in and outside the community.
A police statement said: "We’re aware of a video circulating on social media of a boy being attacked by two other boys. This is clearly an incredibly distressing incident. We are treating this as a hate crime and with the utmost seriousness.
Superintendent Jim Baker added: “The boys involved in this incident have been identified and our enquiries are continuing. This also includes joint working between our youth offending team and the school to ensure suitable action is taken."
Charlton School said it had take swift, immediate and appropriate action, including sanctions and targeted intervention for the perpetrators.
"A police investigation is ongoing, and we are co-operating full," it said in a statement.
The school said that although this incident did not take place during the normal hours of the school day, it had taken full responsibility for working with all students involved, and the wider school community, to prevent any further such incident from occurring.
"We are in contact with the parents of all those involved, who tell us they are satisfied with the actions we have taken. The school is also working closely with the local Sikh community and its leaders at this time.
"Charlton School works hard to provide a safe, nurturing environment where proactive measures are taken to ensure students are protected from any types of bullying."
West Mercia police and crime commissioner, John Campion took to Twitter to say: "I am aware of the video circulating relating to an incident in Telford. The incident shows horrific behaviour that is never acceptable. I am reassured as to the robust response from West Mercia Police."