Seven suburban newspapers in Melbourne's south-east will be shut down, with the loss of 32 jobs.

Metro Media Publishing says the newspapers, which include the Frankston Weekly, Monash Weekly and Peninsula Weekly, will cease publication this month.

Metro Media, which is part-owned by Fairfax, has blamed News Limited for the closures.

It says rival News Limited papers have been offering kick-backs to some real estate agents in exchange for exclusive advertising rights.

Metro Media spokesman John Hine says he has referred the alleged practice to Consumer Affairs Victoria.

"While I'm sure they're taking the complaint seriously, time has run out for our publications," he said.

"Twelve months has gone past. The practice is still occurring and we can't continue to sustain the losses."