Helen Goodman, Labour MP for Bishop Auckland said that newspapers should be treated as "community assets" and warned that a lack of local newspapers is "dangerous".
Goodman argued that without local papers, "fake news" can flourish.
She also added that journalists are becoming exhausted because of a lack of resources.
At a parlimentary debate on the topic, Goodman told MPs in Westminster Hall: ""Normally this is done with pubs but it'd be a good idea if before a newspaper closes a title it is required to offer the title to the local community as a community asset.
"As I've said, I think many of these - like the Camden New Journal - could be run on a financially sustainable basis, could be run by co-ops of the journalists, and I think we need to put this option on to the statute book."
Since 2005, 200 local newspapers have closed.