There will be nearly 5,500 unused places in the next five years, Shropshire County Council said.

By 2012 it is estimated there will be nearly 3,500 fewer children in Shropshire's 141 primary schools than there were in 2001.

Education chiefs said they must review how schools are organised, as smaller classes means less government funds.

Financially viable

For every primary school child the council gets a grant of �3,551.

To tackle the growing cash shortfall, a consultation involving parents, carers, school staff, governors and children has now been proposed to draw up a new policy.

Ann Hartley, county council cabinet member for children's services, said: "The smallest schools cost more per pupil than Shropshire receives from the government, so draw resources from other schools."

Some schools with less than four classes will need to form an important part of the network Liz Nicholson, Shropshire County Council

The council says it wanted to maintain a good spread of rural schools, but that each should be financially viable and be "working towards a minimum of four classes".

Liz Nicholson, corporate director for children and young people's services, said unless the current structure was reviewed, Shropshire primary schools would have 20% surplus capacity by 2012.

The Audit Commission recommends a maximum of 10% empty places in a school.