The closure of Australia's AAP Newswire after 85 years has been described as a blow to democracy.

'The wire' has supplied articles to regional, national and global newspapers, broadcast outlets and digital editions in various forms since 1935 and on Tuesday, it was announced the business will make its final transmission on 26 June.

AAP is no longer viable in the face of increasing free online content, management said.

It means about 180 jobs will be lost from the company's editorial operation and hundreds more from subsidiaries.

Federal parliament acknowledged the move.

First question from #AAP staff: when did you find out this was going to happen?



CEO: It has been discussed for 5-6 months but it was not until late December that a final call was made.



To be clear, the leadership has known for about two months and only informed staff today. — Tiffanie Turnbull (@tiff_turnbull) March 3, 2020

The final day for @AAPNewswire is June 26. Full statement here: pic.twitter.com/5nASHlgUd3 — Benita Kolovos (@benitakolovos) March 3, 2020

Another question from #AAP staff: Do you think it’s a little rough that our termination payments will be a shadow of what staff at News Corp and Nine get? — Tiffanie Turnbull (@tiff_turnbull) March 3, 2020

Something incredible just happened. I just walked out of court as wonderful AAP snapper @DanDpeled was hearing the announcement about @AAPNewswire. You know what he did? His job. @withMEAA pic.twitter.com/PmrtTHfyjO — Alexandria Utting (@alexutting) March 3, 2020

AAP Newswire will close — Matt Coughlan (@CoughlanMatt) March 3, 2020

"You will leave a massive void in terms of information coverage," Opposition Leader Anthony Albanese told the chamber after naming each of the press gallery's AAP journalists.

"Democracy should not be taken for granted ... the Australian public will be less informed as a result of the decision today which is a great tragedy."

Labor MPs held up signs which read "thank you AAP" as Prime Minister Scott Morrison acknowledged the newswire's "proud history here in the Australian parliament".

"They have a wonderful history in this place and when you have such an important institution such as AAP coming to an end ... that is a matter of real concern."

Australian Associated Press' Pagemasters editorial production service - employing hundreds of people - will also close at the end of August.

AAP is owned by Nine, News Corp Australia, The West Australian and Australian Community Media.

AAP chairman Campbell Reid described the newswire as Australian "journalism's first responder".

"It is a great loss that professional and researched information provided by AAP is being substituted with the un-researched and often inaccurate information that masquerades as real news on the digital platforms," added Mr Reid, who is also a News Corp executive.

This story about AAP’s closure ... written by AAP. https://t.co/qbNXe7azJs — Adam Gartrell (@adamgartrell) March 3, 2020

#AAP CEO says other news wire agencies around the world are facing similar realities — Tiffanie Turnbull (@tiff_turnbull) March 3, 2020

This is a huge failing in the fabric of our media landscape. Having an independent wire service has been a bedrock for national and local media. Its closing will weaken the public square. https://t.co/UIO0Yb6Br6 — Marcus Strom (@strom_m) March 3, 2020

AAP provided reporting on general news, courts, politics, finance, entertainment, travel, racing and sport, sports results, plus images and video.

The decision to close had been tough but shareholders were left with little option, Mr Reid said.

"The number of organisations choosing to no longer rely on the AAP service has made the business unsustainable."

Editor-in-Chief Tony Gillies paid tribute to his team, describing them as "the most humble and hardest news people".

"We have had a place like no other in journalism. We exist for the public's interest and I now fear for the void left by the absence of AAP's strong, well-considered voice," Mr Gillies said.

The Media, Entertainment and Arts Alliance described the closure as "a gross abandonment of responsibility by shareholders".

"AAP delivers news, photos and sub-editing services that the major media groups either cannot or will not," union president Marcus Strom said.

"Bean counters at the top of media organisations might think they can soldier on without AAP but the reality is it will leave a huge hole in news coverage."

The Alliance blamed the federal government's failure to effectively deal with digital content aggregators, search engines and social media, which has made news readily available for free online.

Federal Communications Minister Paul Fletcher said AAP's closure was a reflection of the wider media sector.

"Some types of content are struggling, other types of content are booming. Streaming services are booming," he told the ABC.

"Businesses in the media and communications sector are seeking to reposition themselves, building in areas that are growing and reallocate resources from other areas."

I like my job. ☹️ #saveaap — Ed Jackson (@edjacko) March 2, 2020

AAP's numbers yesterday -

Our top 10 sport stories were published 1595 times.

Our top 10 news stories were published 2514 times.



That's 4109 blank spaces on websites and newspapers, dead air on radio that would need to be filled without us. — Karen Sweeney (@karenlsweeney) March 3, 2020

AAP does a mountain of vital journalism that is seen by millions of Australians, without credit for the agency itself. A shutdown would leave a massive hole in the independent media landscape. #saveAAP — Nick McKim (@NickMcKim) March 3, 2020

Devastating news for Australian media at a time when we can't afford to lose voices #saveAAP https://t.co/ODDR0iZLWs — Mehreen Faruqi (@MehreenFaruqi) March 3, 2020

Without independent journalism, democracy and social justice wither.



Along with unions, NGOs and academic experts they inform the public and speak truth to power.



Solidarity with @AAPNewswires #auspol #ausunions @withMEAA pic.twitter.com/UM0cZQDNPs — Senator Tony Sheldon (@senator_sheldon) March 3, 2020