Vale of Berkeley College is facing the axe as the result of a recommendation made by Government adviser Graham Badman.
But Gloucestershire County Council wants to look at the option for a federation with another school, similar to the arrangement between Winterbourne International Academy and Yate International Academy.
The former Ridings High School in Winterbourne and King Edmund School in Yate came together in September under the Government's Pathfinder programme so the top performing Ridings could provide leadership to the less successful King Edmund School.
Both schools continue to operate on their own site under the federated academy system, each with its own principal and with an overall executive principal.
The recommendation to close Vale of Berkeley College, which serves Berkeley and surrounding villages, came just seven months after school inspectors said it was improving.
The school is small, with fewer than 300 pupils and no sixth form. Youngsters who go on to sixth form often transfer to Katharine Lady Berkeley's School in Wotton-under-Edge or Rednock School in Dursley.
Mr Badman said the college should shut as part of a review of schools with "challenging" results and falling pupil numbers.
He said low student numbers were having a negative impact on the school's ability to offer a broad curriculum, limiting opportunities for pupils.
A consultation exercise is about to start to look at the options for the school.
Jo Grills, director of learning and development, said: " This is an open consultation and anyone in the local community can take part. We understand that school changes don't just affect the pupils.
"We have to respond to the Children's Secretary, Ed Balls, and we want to get everyone's views before we do that."
If the federated academy option was pursued, governors of neighbouring schools would have to support the move.
A meeting for parents will be held at the college at 6.30pm on Wednesday, November 25, with a drop-in session for parents the following day from 3pm-6pm. A community consultation event starts at 6.30pm on Wednesday, December 2.