Artist's impression of the planned new sorting office in Northampton
Royal Mail has confirmed the closure of its Milton Keynes Mail Centre in favour of a move to a new multi-million pound sorting office in Northampton.
The complex, to be built in Swan Valley near Junction 15a of the M1, will combine mail centres for Milton Keynes, Northampton and Coventry.
Royal Mail said the 500 workers at Milton Keynes were expected to move to the new centre.
A Royal Mail spokesman said no compulsory redundancies were expected.
He said the proposals come after a review of its operations in Bedfordshire, Northamptonshire and Coventry along with talks with union leaders from the Communication Workers Union and Unite.
The spokesman said the present Milton Keynes centre, based at Dawson Road, Bletchley, was "no longer fit for a modern mail distribution network".
The new mail centre, which will be equipped with the latest technology, will employ about 945 workers.
Area general manager Dennis Murphy, said the plans would "improve efficiency, give customers better value and provide employees with a more modern environment to work in".
Mr Murphy admitted the move would mean changes for staff but added that he hoped "everyone who wants to stay with Royal Mail will be able to do so."
The move to the new centre, which was given planning permission in by the West Northamptonshire Development Corporation in October, is expected to take place in 2010.