Estuary TV will stop broadcasting at the end of the month and a number of staff will be made redundant.
A spokesperson for The Grimsby Institute, which runs the TV station, confirmed to Lincolnshire Reporter that the channel will stop broadcasting on August 31.
The Grimsby Institute is looking to work with a large broadcaster to transfer the licence to preserve the future of local television in the North East Lincolnshire area.
The station reportedly received £300,000 of licence fee money between 2013 and 2016 to produce 4,000 news stories which could then be broadcast on BBC channels.
A spokesperson for The Grimsby Institute said: “The Grimsby Institute has reluctantly taken the difficult decision to close Estuary TV, resulting in redundancies.
“We are proud of the small, but incredibly hard-working team’s efforts to develop innovative regional programming by working with local organisations.
“We are now seeking to work with a larger broadcaster to transfer the licence, ensuring local television will continue in the North East Lincolnshire area.
“This is a positive move, which will see growth and change in programming for the region. We hope it will also create the potential for staff to undertake new opportunities within the channel.
“Estuary TV has a successful history of engaging with both students and volunteers, which we will ensure continues by working with the potential new licensee.
“It has also provided an excellent advertising option for businesses, however the reality of running a small commercial channel means the required economies of scale cannot be realised.
“As part of our negotiations to transfer the licence, all current contracts with existing advertisers will be managed in line with this process.”
A further announcement is expected over the next 24 hours.