The Yarralumla post office will close at the end of March and the nearby IGA will offer postal services in its place, Australia Post has confirmed.
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Post office boxes will be moved to the supermarket and a "store-in-store" post office is planned.
"We are finalising arrangements with the new licensee and will provide updates to the community as details are confirmed," a spokeswoman for Australia Post said.
The current post office will close on Friday, March 29 and post office box holders will be formally notified of the move.
Yvonne Dourdoulakis, who manages the IGA, met with Australia Post representatives last week to discuss taking on the post office licence, which the supermarket managed before 2014.
The current post office owner, Kia Fard, who manages the business with his wife, previously told The Canberra Times that high rent was forcing him out of the business.
Mr Fard said it was "hard to see [the post office] go" but high rent costs had put off potential buyers for the business. The post office had been on the market for two years.
Several shop owners said that high rents at the shops had made it difficult to
Yarralumla Residents Association spokesman David Harvey said a bakery, the Sukothai restaurant, Urban Hair, an Indian restaurant and a newsagent had closed because of high rent.
"All the shops that have closed have cited the high rents as being the biggest obstacle," he said last week.
