Kenilworth School and Sixth Form may be given a loan of around £1 million by Warwick District Council to allow it to move to a new site.
The school and sixth form, which are currently at Leyes Lane and Rouncil Lane respectively, plan to move to a joint site at Southcrest Farm by September 2021.
But the school says it needs around £1 million by June 2018 to allow the move to happen in time - money that it does not currently have. With the funding it receives, the school runs at a loss of £250,000 every year due to the costs of maintaining the two sites.
Warwickshire County Council have ruled out helping the school fund the move.
Warwick District Council's executive will now consider whether to help the school by loaning it the money and possibly purchasing its land on the two sites.
The school's planned move will free up land for new housing as part of Warwick district's Local Plan.
The council's executive will make a decision on whether to start negotiations for the loan and the land purchase at a meeting on Thursday May 31.
Kenilworth School declined to comment on the plan.
Warwickshire County Council has also been contacted for comment.