The Mixed Oxide plant at Sellafield is to shut with the loss of up to 600 jobs.
The Guardian newspaper is reporting the closure is due to the Fukushima incident in Japan.
The MOX plant, as it is known, was established to reprocess nuclear fuel and its main customer was the Japanese nuclear industry.
The news is likely to be welcomed by Manx environmental groups which have campaigned against further development of the Cumbrian site.
Earlier this year it was announced Sellafield, Heysham and Anglesey had been earmarked as sites for new nuclear power stations.
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