Controversial plans to merge two busy post offices have moved a step closer.

Post offices at Highbury Corner, Highbury, and opposite St Mary’s Church in Upper Street, could close and be merged into a new office across from the petrol station in Upper Street.

Noble House Properties, based in Coleman’s Fields, Islington, which owns the property at 159 Upper Street earmarked for the new post office, is understood to have carried out initial discussions with Islington Council about submitting a planning application to amalgamate two shop units in the building.

Cllr Paul Convery, Islington Council executive member for planning, regeneration and transport, said the authority offered Post Office Ltd a new site in Highbury Corner.

He added: “It is a disgrace. This has been a waste of our time.”

Cllr Rhiannon Davis said: “This defies logic because they are extremely busy. It means some people will have to travel further to reach a branch and the biggest losers could be elderly and disabled residents. Post offices have a crucial role to play in the community.”

Cllr Terry Stacy, leader of the Islington Liberal Democrats, said: “I am disappointed the government has not listened to the pleas of the borough. This merger would be a closure by the back door.”

Post Office spokeswoman Sally Hopkins said: “We are aware that there are future proposals for development of the sites where Highbury Corner Crown Post Office and Islington Crown Post Office are currently located. “We are absolutely committed to maintaining post office services in Islington and we are still considering our options to enable us to achieve this. This includes investigating the opportunity to merge the two offices into a more modern, larger, flagship office which can provide a better level of service to customers and can upgrade its accessibility for those less able to use our existing facilities.

“Any changes to the location of post office branches are subject to public consultation before a final decision is made.”