THE Launceston City Council plans to shut its Killafaddy livestock market by December.
Aldermen will decide whether to green-light the closure this Monday at a council meeting.
Council general manager Robert Dobrzynski said changing market conditions and decreased stock through the facility had prompted the move.
He said 40 per cent of beef cattle and 60 per cent of sheep had been sold directly to processors in recent years.
Mr Dobrzynski said the market had cost the council $124,000 last financial year and $436,000 in the past seven years.
The market earned $165,556 in revenue last year and has a five-year average of $173,141 annually.
Mr Dobrzynski said Killafaddy was the only saleyard of the state's nine markets to be run by a council, not corporate agents.
"Therefore officers are recommending that the market cease operations at the end of the year and be offered for sale as a going concern," Mr Dobrzynski said.
"If primary producers or industry partners see value in continuing the market, they will therefore have the opportunity of taking it on."
The plan to sell comes after the council started a review of council operations last year.
The council hopes to find $2 million in savings this financial year, and $4 million over the next two financial years to reduce its $6.5 million budget deficit.