Wisbech-based 107.5 Fen Radio is set to become the second station to have its licence handed back to Ofcom by owner UKRD.
The station, which has a TSA of just 77,000 will close by the end of July, according to a newspaper report.
The paper reports that falling advertising sales are to blame for the closure, which is expected to be announced by the group on Tuesday. Four people are set to lose their jobs as a result.
The station was originally known as X-Cel FM and its coverage extended to Ely. The Ely service was subsumed into Star Cambridge in 2002, leaving Fen Radio as a standalone service.
In September 2006, UKRD made radio history by becoming the first group to surrender a licence to the regulator with the closure of its Star service in Stroud, Gloucestershire. Since then, only one other licence has been handed back; that of Kingdom Group's River FM in Livingston.