It's undertaking a period of consultation with staff, funders, supporters and partner organisations about its future.
The charity's trustees took the decision due to concerns about long-term financial sustainability.
In a statement the charity's Chair Martin McEnery said: "The past five years have been increasingly challenging for Progressio and our projects overseas.
"We have continued to deliver good work through these challenges, but it has been difficult to secure the funding - particularly unrestricted income - necessary to ensure a sustainable future."
While closure is one option, he said he hopes funding would be found to keep the charity going.
He added: "The trustees are open to other opportunities arising, yet we must remain realistic and act responsibly.
"On that basis, the consultation on the possibility of closure next spring will allow us to make balanced and informed decisions in light of both the long and short term interests of the charity, and in compliance with our legal duties. In the meantime all our ongoing work continues."
The consultation will finish in September when trustees will make a decision.
Progressio recently celebrated its 75th anniversary and is currently working on projects across the world - mainly in Africa and South America.