The Policing Board has received a recommendation to permanently close Crossmaglen PSNI station because of the prohibitive cost of running it.
The station at Cullaville Road is staffed by officers who must live on the base during their shifts due to the threat level in the south Armagh area.
The fortified army and police base in the village closed in 2006. Dissident republicans have attacked the police station a number of times since then.
The report received by the Policing Board looked at the financial viability of continuing to man the station amid a transformation of policing in the area.
The Belfast Telegraph understands the report said that having officers living on the site while working in four-day shifts was unsustainable and financially unviable.
It recommended the closure of Crossmaglen and the transfer of all policing to Newtownhamilton, around 10 miles away.
Chief Constable Simon Byrne angered nationalist politicians in 2019 after he shared a photograph of himself with police officers armed with automatic weapons outside Crossmaglen police station on Christmas Day.
The South Armagh Policing Review was commissioned after the event, with the report received this week.
While the proposals are still being considered, the majority of Policing Board members are expected to support closure.
A spokesperson for the Policing Board said: “This comprehensive assessment, which includes recommendations for change across a number of key areas, sets out the extent of the work required to improve delivery of policing services and overall confidence in police-community relations in the south Armagh area.
“The far-ranging review does raise a range of further questions around policing style and approach which the board will require more in-depth discussion with the PSNI on prior to publication."
Sinn Fein MLA Liz Kimmins said that her party had “been pushing for this important review due to the issues faced by the south Armagh community, and we will look at and analyse the report in depth”.
"[It] includes over 50 recommendations for changes to policing across a wide range of key areas… there is also further discussion required with the community and at Policing Board level,” she added.
"This is a very comprehensive piece of work that was invested heavily in by the community, who need and deserve fair, proportionate and accountable policing in south Armagh.
“We hope this will establish a new beginning to policing in our area, however the community must be involved at all stages of any transitional process.”