Shane Warne has agreed to shut down his signature charity to avoid it being potentially stripped of its registration by the state government regulator.

Consumer Affairs Victoria director Simon Cohen announced on Wednesday the regulator had completed its 11-month investigation into The Shane Warne Foundation, noting it considered deregistering the charity because of the "low proportion of funds raised that were distributed to beneficiaries in recent years".

Shane Warne will close his signature charity ahead of a potential move by the regulator to deregister The Shane Warne Foundation. Credit:Mathew Lynn

Fairfax Media has previously revealed the foundation has been running at a financial loss, donating just 11 cents to 32 cents of every dollar raised each year on behalf of sick and underprivileged children since 2011.

In October 2016, CAV issued the foundation with a "show cause" notice asking why it should be allowed to remain a registered fundraiser after violating guidelines requiring it donate at least 35 per cent of the money it raises.