The trustees of Ushaw College, near Durham, made the annoucement today, Friday, after meeting this morning.
Their chairman, Archbishop Patrick Kelly of Liverpool, said: "This is one of the most difficult proposals that we as Trustees have had to make, not least because of the excellence of the formation our students are receiving."
There are currently 26 seminarians at Ushaw and it is planned that those who have not completed their studies by June 2011 will transfer to other seminaries.
The seminary serves the seven dioceses of the Northern Province of England, the Diocese of Shrewsbury and the wider Church.
The trustees will now begin a consultation about their closure proposal with the college's 62 staff.
College President Mgr John Marsland expressed his sorrow at the news, though he was not without hope that there might be an eleventh-hour reprieve.
"We have long tried to find a development partner and it would be nice to believe that a partner will still come forward with a viable business plan, but unfortunately time is running out and we have to face the reality of the situation we are in," said Mgr Marsland.
In the nineteenth century Ushaw was considered the premier Catholic college in England and even during the 1950s had 400 students.
With the decline in priestly vocations there were attempts in recent decades to find alternative uses for the vast site with educational outreach programmes, a new biomass enterprise and tourist accommodation.
SIC: TT/UK