The approach would see bullies and victims meeting in a safe environment to listen to one another and for the perpetrators to acknowledge the effects of their behaviour.
The guidance, published by the Department for Children, Schools and Families, advises schools on how to prevent and respond to the bullying of disabled and SEN children and identifies acceptable behaviour.
Other suggestions include "solution-focused brief therapy", a type of counselling, as well as peer mentoring and mediation schemes.
But Jo Williams, chief executive of learning disability charity Mencap, said the advice should have gone further.
"While we welcome the new guidance on the bullying of children with disabilities or SEN, we believe it should be founded on a zero tolerance approach," she said.
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