Tayport Post Office is likely to close and services moved to another local business as part of a “modernisation programme”.
The process for transferring services includes bidding and a public consultation, and is set to take at least six months.
Newport Post Office has recently completed a similar transfer, which took over two years.
Stuart Boswell, subpostmaster at Tayport said: “Although I’m going to be out of a job, it’s a good thing.
“It could allow services to run in the morning and into the evening.
“Though it might depersonalise the service, it will be a good thing overall.”
Suzette Rabout, from Post Office Limited said: “As part of our modernisation programme, we are currently in talks with the postmaster of Tayport Office regarding options going forward for this branch.
“We would like to reassure customers that the Post Office is committed to maintaining a Post Office service in Tayport and will work hard to ensure this.”