Authorities in Newtown, Connecticut, say the district should tear down, then rebuild the primary school where 20 young children and six staff were gunned down.
A task force of 28 town officials unanimously recommended the plan after residents expressed mixed opinions on what should be done with Sandy Hook Elementary School.
The proposal now goes to the local school board, which has final authority.
The panel had narrowed a list of choices to renovating or rebuilding on the school site or building a new school on property down the street.
The 430 children who survived the massacre in December are currently going to a renovated school which has been renamed Sandy Hook in a neighbouring town.