Huddersfield based charity Forget Me Not, took over the hospice in July 2017, and took to Twitter to announce the closure.
"It is with deep regret that we have to announce that we have begun a consultation with our staff on a proposal to cease offering services from our children's hospice facility at Grace's Place in Bury."
In a later statement, the charity revealed it was due to high costs that meant the important hospice would be forced to close.
"Despite the tremendous goodwill and support Grace's Place has received from the local community, the costs of providing high-quality care are rising and exceed the funds we are able to raise."
The hospice itself was an important facet in the community as it aided 50 children and families with life-limiting conditions in West Yorkshire, England.
The daughter of Prince Andrew, Duke of York, and Sarah Ferguson is said to be devasted at the news Forget Me Not children's hospice is closing, however, the 30-year-old is yet to make a formal statement.