The Manx government's Printing Services Department will move to the Isle of Man Post Office early next month, following approval of the change by the Council of Ministers.
Minister for Economic Development Allan Bell says the Post Office has extensive knowledge and expertise in the area of printing and brokering, which are not core government services.
He says his department is pleased to work with the Post Office on the 'cross-government initiative', to reduce overheads and maximise savings.
The transfer of the government’s Printing Services Department will amalgamate the facilities of central government with those of the Post Office.
The Post Office plans to integrate the department into its Integrated Mailing Solutions (IMS) Division.
The IMS is the largest mailing division on the Island, offering printing, scanning and data capture to government and commercial clients, in the United Kingdom and the Isle of Man.
Mr Bell says the only change current suppliers will notice is the Post Office taking over the central brokering role.
The printing services will be transferred on September 5.