A £2billion modernisation plan by Royal Mail will lead to the closure of the Watford mail centre.

Satellite delivery offices including Kings Langley will also shut, as part of proposals that will see about 300 jobs lost across Hertfordshire.

Although Royal Mail insists no final decision has been made about the future of the Watford centre, in Ascot Road, sources inside the depot said they were told last month the site had been sold.

Under a review of its operations in Watford, Hemel Hempstead and Stevenage, it is proposed that a new multi-million pound mail centre on the Maylands estate in Hemel Hempstead will adopt processing work from all three sites.

It is also expected to house delivery services for Kings Langley, Berkhamsted and Hemel Hempstead, while delivery services for Watford will be relocated to an as-yet unknown site.

The company announced in June that it was reviewing its operations in Hertfordshire, as part of a modernisation programme that will see £2billion of investment in new technology and equipment.

“There is no final decision about the future of Watford mail centre,” a Royal Mail representative said. “We are continuing to consult with our trade unions about a proposal to move operations to a new mail centre in Hemel Hempstead.

“Royal Mail needs to respond to the huge growth in electronic communications and the resulting decline in overall mail volumes, which in the UK means there are now 13 million fewer letters posted every day compared to five years ago. This review is being undertaken with full consultation with our trade unions and we are now at the stage where we have developed formal proposals.

“As part of this agreement we will [continue] consulting further with the trade union to establish the detail of how the planned changes would happen and to enable them to put forward any further options for Royal Mail to evaluate, with a view to reaching a final decision in November.”

Furthermore, it is expected that 300 jobs will be lost from a total of 4,500 across the county.

“Our intention is to make changes without recourse to compulsory redundancies,” the representative added.

“By asking people to demonstrate a reasonable flexibility, we expect to be able to find roles for everyone who wants to continue to work for Royal Mail. Our agreements with the Communication Workers Union set out an agreed approach to managing these changes and we will be working very closely together to support our people during what will, inevitably, be a period of uncertainty.”