The publisher of the Port Stephens Examiner says the 129-year-old newspaper will close without government financial support.
Australian Community Media management told Examiner staff on Friday that the loss-making paper would shut on December 22.
Port Stephens MP Kate Washington contacted ACM managing director Tony Kendall on Monday to offer support and the company has since launched a campaign to save the publication.
The Examiner has published an open letter asking residents to take out paid subscriptions and the business community to advertise.
Mr Kendall said he was calling on both sides of politics to commit to publishing weekly full-page government advertisements in regional NSW newspapers.
Victorian Premier Dan Andrews made a similar commitment before his re-election 11 days ago.
"We've been having dialogue with Chris Minns to see if the NSW Labor party would take to the NSW election the same policy Dan Andrews has got down in Victoria," Mr Kendall said.
"This gives certainty as well as revenue, apart from the fact that we think advertising in the most trusted medium is not a bad thing for the government to be doing."
Mr Kendall said ACM would "pause on the closure" of the Examiner until it was clear whether the next state government would advertise in regional papers.
"We've readvised the staff that it's not looking great, but we'll do everything in our power not to have to close the title because it's not something we enjoy doing.
"It's gone from having to be killed to life support. We'd need to know by mid-January at the latest whether this was going to be a policy, then we'd keep the publication up. Otherwise that's it."
The Examiner has a large print run of about 33,000 papers delivered free to houses throughout Port Stephens.
The rising cost of newsprint in the past year has hit the paper's bottom line.
"The free distribution model when you're printing a lot of copies and the newsprint price goes up 80 per cent makes things very difficult," Mr Kendall said.
Mr Kendall said government advertising would be enough for ACM to continue investing in "legit" journalism in Port Stephens and would send a positive message to businesses about supporting the paper.
Ms Washington said the Examiner was an important part of the community.
"I was relieved to have the conversation and that ACM was prepared to give us a bit of time to work out if there's things we can do that might keep it alive," she said.
"The Port Stephens Examiner has played an important role over many years to keep our community connected."
"I'm hoping the community will get behind the Examiner so we don't lose it."
The paper's front-page letter appealing for help says a "massive increase in printing costs" has left the Examiner "battling to survive".
"It is a fight we are losing," the letter says.
WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.
