Hopscotch Nursery has given up hope of remaining at Shifnal Primary School, and is looking for options to stay in the area so youngsters still have a place to go.
It leaves the future of the nursery hanging in the balance, and 17 jobs at risk. The lease runs out next summer.
Co-owner Claire Ferguson said: "We had the meeting and I informed the parents there's no way that anything will be changed in what's happening with us leaving the school. The school will not be renewing the lease.
"What we've got to do with all our energy is to find a new home. That's what we need to be focusing on. We need to make sure we get it right for the families.
"We want to stay in Shifnal. This is where we want to be. We are a small, family-run business for that reason. We want to be part of a community and build relationships with people.
"Parents had questions to ask and wanted to know what was happening. Their mood was concern more than anything. They're concerned for their children and their jobs, because it affects them in that regard as well. It's a lot of upheaval for the children.
"We attended a council meeting and stressed the importance of Hopscotch staying within the Shifnal community.
"We are determined to make this happen and we are working tirelessly to find suitable accommodation. If anyone knows of anywhere suitable, we are grateful for all suggestions."