Stiperstones Church of England Primary School is set to shut, with children being moved to Norbury or Chirbury.
The move came about after the federation in charge of the school said it was struggling with funding.
The plan is set to be signed off by Shropshire Council’s cabinet at at meeting on May 22.
Karen Bradshaw, director of children’s services at Shropshire Council, said: “On February 27, 2019, the governing body of the Shropshire Hills Federation agreed to formally consult on the proposal to transfer provision for the education of the pupils at Stiperstones to the site of Norbury Primary School and Nursery, with the opportunity for parents to opt to have their children educated at the Federation’s other school, Chirbury CE Primary School.
“A statutory four-week consultation was undertaken.
"A governing body can propose the transfer, but it is the local authority that is the decision-maker.
"The recommendation of the director of children’s services to agree the prescribed alterations so that the governing body can proceed to implementation from January 2020. Following a separate consultation in the summer of 2018, the Federation of the primary schools in Chirbury, Norbury and Stiperstones was approved and the Shropshire Hills Federation established in September 2018.
“This consultation made it clear that unless significant increases in school funding were identified by December 2018 to support provision at Stiperstones CE Primary, it was likely that provision would have to transfer to the primary school sites at Norbury or Chirbury, with parents having the option to choose.
“At the time, the majority of parents stated a preference for their children to transfer to the Norbury site, with a small number preferring Chirbury.
“As the schools funding position has not improved, the governing body of the Shropshire Hills Federation agreed to undertake a statutory consultation on the transfer to the Norbury, with an option for Chirbury.”