National news agency Australian Associated Press is facing mass job cuts and the prospect of closure as its shareholders confront one of the toughest media markets in history.

Sources close to discussions about AAP's future, who spoke on the condition of anonymity, said the operation has been under immense financial pressure and major shareholders Nine Entertainment Co and Rupert Murdoch's News Corp were assessing all options. Nine is the owner of this masthead.

The future of AAP is in doubt. Credit:Dominic Lorrimer

AAP executives will meet with Nine and News Corp Australia executives this week to make a final decision about the operation's future. As many as 180 jobs could go as a result of the planned changes – representing the entirety of AAP's remaining editorial operations.

Media companies are facing rising financial challenges from the weakest advertising market since the global financial crisis and the rise of global digital giants which have drawn audiences and revenues away from incumbents.