Manx National Heritage (MNH) has proposed building a new house for a historic boat in Castletown.
A report due before Tynwald this month looked at options to house the Peggy, an 18th century armed schooner.
In the report, MNH says there are a number of options - but its preferred one is a new building within a courtyard at the Nautical Museum.
It says the new building would cost £2.1 million, and the entire project would cost £4.9 million.
If approved, MNH said the plan, to provide a "world class" heritage attraction, would have an estimated completion date of 2025.
Fundraising is expected to meet much of the project cost.
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