Prime Minister Malcolm Turnbull sees no reason why the Nine Network's takeover of Fairfax Media will spell the demise of local newspapers.
There are fears Fairfax's stable of more than 100 regional mastheads could be dumped as part of the $4 billion merger, the country's biggest media shake-up in more than 30 years.
But Mr Turnbull argues the advertising revenues of regional papers have held up better than major metropolitan publications.
"Regional media, print media, is strong," the prime minister told ABC radio on Friday.
"Obviously the online Google and Facebook and everything else has knocked their revenues around, but they have done better in that environment than their metropolitan cousins have."
Nine chief executive Hugh Marks has told investors some lower growth businesses - including regional publishing - "may be better off serviced by being part of some other environment".
But he added that he imagined the new company will continue to invest in Fairfax's 160 regional mastheads and websites.
Labor leader Bill Shorten has expressed concern about how the merger would affect Fairfax's local papers.
"We want to ensure that Tasmanian news gets covered in Tasmanian media, that it doesn't all come out of Victoria," he told reporters in Devonport on Thursday.
Communications Minister Mitch Fifield has argued the collapse of Australian media companies including Fairfax would guarantee the death of local content.
Senator Fifield said standing still was not an option available to Australian media organisations competing with global online behemoths.
"You can't wind the clock back, the internet exists, there is online competition and Australian media organisations need to adjust," he told ABC radio on Thursday night.
"How they adjust is a matter for them. Individual media organisations are in the best position to know what is in their best business interests.
"But if Australian media organisations fail, then you will have less local content."
The Australian Competition and Consumer Commission will examine the historic merger, which will see the Fairfax name disappear after more than a century, but the deal is expected to be approved.
The prime minister, who worked for Nine as a journalist and a lawyer, said the two companies were in a "very tough and competitive" business environment and bringing them together would bring more security.
Former prime minister Paul Keating has described the merger as an "exceptionally bad development", arguing it will cut diversity of opinion and information.
