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Glebe Markets owner David McCumstie says he felt it was time to pack it in after having worked the Saturday fixture since his parents founded them in 1992.
Mr McCumstie and his wife Naomi, who run the famous inner-Sydney market, have told stall owners they will be closing; the last trading day will be February 25.
The NSW Department of Education said a tender process to find a new operator of the markets on the grounds of Glebe Public School would commence.
Mr McCumstie cited personal reasons, but also said it was the timing of the lease being up for renewal, and a rough period during the COVID-19 pandemic, that influenced the couple's decision not to stay on.
"We thought, can we do that again ourselves, and can we bear that weight, because it is a burden to take this on again and it is lengthy," he said.
"The lease was up and now it is really someone else's turn."
Stall owners 'blindsided'
Some store owners said they felt blindsided by the decision to close the markets.
The decision left them with just four Saturdays to trade. Mr McCumstie said he thought this gave traders enough time.
"We actually feel we gave them lots of time to actually prepare," he said.
"We tried to give them as much time as we could to actually prepare for this."
'We want continuity'
Mr McCumstie said he would like the Department of Education to speed up its process, believing market patrons wanted continuity.
"We don't want to see the markets just stop at the end of February."
He would also like to see the new operator take over the brand and website so there is a continuity of the markets as a product.
NSW Balmain MP Jamie Parker said there would be no permanent closure of the markets.
In an email sent on Thursday, Mr Parker said there might be a "gap in service" for a few weeks while the new operator was appointed.
After their final Saturday, Mr McCumstie said he and Naomi would probably not do new markets, instead focusing on things "that we have neglected to do".
He imagined this would include a lot of housework before settling down into doing some art.
Ultimately, Mr McCumstie would like to see the spirit of the market continue.
"What we're hoping for is someone who has a real heart for Glebe."