The Glamorgan Gem has entered a period of consultation with staff - who have been on furlough since the Coronavirus pandemic began.
The Vale weekly paper - which is based in Cowbridge and has six titles in the Vale and Bridgend - suspended printing at the end of March, and also saw all of its staff furloughed.
The Gem's six editions cover Barry, Bridgend, Cowbridge, Llantwit Major, Penarth and Porthcawl.
But now, the Tindle Newspapers Group - who own the Glamorgan Gem along with ten other Welsh newspaper brands - have began a 'period of consultation' with staff to discuss the future of the paper.
The Glamorgan Gem employs five staff in the editorial department which includes reporters, and three sales team members.
One staff member told Bro Radio, "It has been proposed that it could close but it is still very much under discussion at the moment. We're all at risk of redundancy."
Following the announcement, Vale MP Alun Cairns has written a letter to Tindle Newspapers, asking them to reassure the readers that the paper will return.
The news comes after announcements of job cuts at the BBC, Newsquest and Reach PLC in Wales, spelling a very uncertain time for the industry.
Also reacting to the news, the MS for the Vale, Jane Hutt said, "We have always relied on the GEM for local news and information... we need the GEM and we support this important outlet serving and reflecting the views of the whole community".
Welsh Conservative Members Andrew RT Davies and David Melding, who have constituencies in the Vale, said:
"Local independent press and radio are vital for people not online, especially a paper like the Gem, which had a circulation of more than 40,000 copies a week meaning it got into people's homes more effectively than many of the daily papers.
"The loss of this paper would be bad news for the Vale, and takes away a lifeline of information for many people."
Bro Radio contacted Tindle Newspapers who said, "We currently have no comment to make on this matter."