Suffolk Libraries is preparing a bid to retain the contract to run the service in the county for another six years - which could be extended by another six years later.
But there are fears that the £80m contract offered over 12 years might not be enough to protect all current services.
The current contract finishes at the beginning of June next year but talks over the new deal have been going on for several months.
Suffolk Libraries was formally launched as an independent charity 12 years ago this week - on August 1, 2012.
It was set up in the fall-out from the county council having to find millions of pounds in savings as a result of the then-government's austerity programme.
There is now one more library than there was when the service was launched - a new library branch opened in Moreton Hall, Bury St Edmunds, in 2022.
There are now 45 branches, four weekly pop-up libraries (all launched by Suffolk Libraries) and three mobile libraries.
The new contract amounts to £6.8m a year, compared with £5.9m a year currently, but there are fears that inflation could erode this income and force whoever is running the service to make serious cutbacks.
More than 201,000 people, (a quarter of the county's population), enjoyed events and activities at libraries in Suffolk in 2023/24 and Suffolk Libraries’ recent customer survey revealed that 97% of people rated its events and activities as excellent (62%) or good (35%).
The tender for the process was published in June and Suffolk Libraries is in the process of finalising its detailed bid for the new contract which needs to be submitted on August 7.
A spokeswoman for Suffolk County Council said there would be discussions with bidders for the contract during August and September - a final decision would be made by the cabinet in November.
Bruce Leeke, chief executive of Suffolk Libraries, said: “I’m immensely proud of what our charity has achieved in the past 12 years.
"Despite the many challenges we’ve faced in this time, the reputation of our library service and wonderful colleagues has never been higher.
"We are working very hard to put together a detailed and thorough bid we feel will offer us the best chance to run the service for another 12 years.”
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