At a meeting last week, Reverend Craig Nicholas notify community members of the news.

He said the decision was also because the church, built in 1959, was unsafe for use after being severely damaged by termites.

Lockhart Shire Council mayor Rodger Schirmer said it is sad whenever a community loses a facility.

"For people who go to church, when that's not available then they have to travel more, which becomes an issue for committed christians," Cr Schirmer said.

"I'd imagine that attendance numbers across all denominations would be down.

"That's just the way it is these days - people are not going to church as they were.

"I think it's very sad because in this day and age."

During the community meeting, the church and land were offered for sale to the community at a competitive price or to an interested community member.

If those two options were not successful, then the property would be offered as a whole on the open market.

The meeting also considered the possibility of the land being purchased by a private buyer and becoming a dumping ground for unused cars or machinery, creating an eyesore in the heart of the village.

In a statement, the Yerong Creek Progress Association said attendees did not express interest in any of the sale options.

However, ex-mayor Peter Yates said the association will put in an expression of interest after its meeting on Monday night.

"It's very sad as it's an icon of the area," Mr Yates said.

"It's disappointing that the numbers have dropped off of course, but that's the way society has gone."

Asked about the future, Mr Yates said it would be great if communal church services were conducted at the site.

"It'd be fantastic if that could be organised, but it depends on how many would want to come forward and lead it," he said.

Reverend Craig Nicholas has been contacted for comment.