Perth and Kinross Council is in negotiations to buy land to build a new Braco Primary School rather than extend and refurbish the existing school.
A local councillor has said building a new purpose-built school would be the "best way forward".
Braco's primary school building has been rated as poor by Perth and Kinross Council and initial plans to refurbish both Braco's school and village hall to improve the learning environment were found not to be cost-effective.
