WOOL auctions at the Victorian Wool Centre at Brooklyn are to cease in June next year.

Australian Wool Exchange chief executive Mark Grave has confirmed that AWEX, which holds the head lease on the auction centre, won't renew it.

The decision means that the 30 per cent of the southern clip which is auctioned at the centre will now be sold at the Australian Wool Handlers centre at Frederick Street, Laverton.

AWEX, which charges a fee on wool auctioned at the centre and sub-leases offices to a dozen exporters, found its lease was untenable with brokers Ruralco/Rodwells and Quality Wool both giving notice to switch their sales to the AWH centre.

Mr Grave said the decision meant a single selling centre for the southern region.

"The AWEX board has consistently held the view that a single sale room in all centres is in the best interests of all sectors.

"It is hoped that through this decision the industry will take the opportunity to work together to achieve this objective in all centres," Mr Grave said.

The Victorian Wool Centre sales complex was established in 1993 but with the decline in wool production over the past 16 years, the introduction of a second auction sales complex in 2004, and more recently some sellers indicating their intention to offer at the Frederick Street complex, has meant that the Victorian Wool Centre is no longer sustainable.

Australian Council of Wool Exporters executive director Dr Peter Morgan said the move from the purpose-built sale rooms at Brooklyn was a pity, but inevitable.

Dr Morgan said he anticipated that AWEX and the Australian Wool Industries Secretariat, along with most of the exporters who lease offices at Brooklyn would move to Frederick Street.

Ironically, the AWEX decision for one centre in Melbourne coincides with a proposal to develop Goulburn, NSW, as an alternative selling centre to Yennora in Sydney.

The Eastern Wool Marketing Centre is a proposal by commercial property investment company Tablelands Property Group which owns the former Elders wool warehouses in Goulburn.

TPG is promising lower rentals and cost savings.

Although with exporters and brokers, less than six months ago, rejecting any change from the current selling arrangements, the Goulburn proposal is doomed.