Its report Nursery Schools Now, published yesterday, points out that while maintained nursery schools have made a significant contribution to Sure Start Children's Centres, the introduction of the single funding formula had left many nursery schools 'nervous' about their future.
Fifty three per cent of the 437 nursery schools in England are part of a children's centre.
Chief executive of Early Education Megan Pacey said, 'It would be a tragedy if some of the best early years provision in the country is lost in the process of levelling the playing field.'
She said nursery schools are often viewed as 'too expensive' when local authorities are looking to make cuts. 'We want local authorities to take stock, to see what better value maintained nursery schools could be if they are used properly.'
She said many councils used nursery schools' expertise to help support other early years providers who are struggling, by giving nurseries advice and training on an 'ad hoc basis', but fail to acknowledge the real value of nursery schools.
Early Education is calling for local authorities to involve nursery schools in their strategic planning as part of their entire strategy in children's services.
Putting in place full service level agreements would go some way to help to ensure their sustainability, said Ms Pacey.
Nursery Schools Now is available at www.early-education.org.uk