North Walney Nursery and Primary School has seen pupil numbers fall gradually over the years.
Parents are being consulted over the potential closure of North Walney Nursery and Primary School in Walney, Barrow-in-Furness.
Westmorland and Furness Council said the school is "unsustainable" and it is "difficult to see how things would improve" unless pupil numbers rise.The local authority blamed a reduction in pupils registered at the school, which has taken place over a period of several years.Additional financial support cannot be provided as budgets are linked to the number of children attending, the authority said.
Sue Sanderson, the council's cabinet member for children's services, education and skills, said: "The decision to close a school isn't one the council would take lightly. "Sadly, we're concerned the school's financial position is unsustainable and it's difficult to see how things will improve if pupil numbers do not .
"Our decision to consult on this issue is not a reflection on the dedicated staff at North Walney, who have done everything they can under difficult circumstances and will continue to do so until a final decision is made on the school's future."
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