Talks are taking place to find a new way of delivering a successful market in Norris Green.
Broadway Market has been struggling for some time, with roughly half of the units currently vacant.
It is costing around £200,000 a year to run, and the council can no longer afford to subsidise the rent on the current building.
One option is to operate it as an outdoor market once a week.
Councillor Malcolm Kennedy, Cabinet member for regeneration, said: “Sadly the use of the market has been declining over a number of years and the number of traders has reduced.
“We are now in a position where we have to look at a different way of doing things and have started discussions with the traders about how we can achieve this.
“We have pledged to keep the traders fully involved and informed in any decisions that are made.”
It is expected that the market will move next July when the lease expires on the current building.