Peterborough City Council are set to terminate their waste contract with Amey in a bid to save £100,000 every year.
The plans are part of the latest budget proposals, which will be released this week.
A 23-year-contract was signed with Enterprise - which was bought out by Amey in 2013 - in 2011.
However, the council would not have to pay any extra money to terminate the contract early, unlike other areas of the country who have terminated similar deals after both parties agreed the deal.
The contract saw Amey delivering household waste and recycling collections, street cleaning, property design and grounds maintenance.
It has not yet been determined how services will be provided, but it is likely to be a joint venture partnership with a private organisation.
Councillor Gavin Elsey, Peterborough City Council cabinet member for waste and street scene, said: “There are no proposed job losses.
“We want to thank Amey for what they have done, but we think we can make savings doing it another way.
“We want to improve the recycling rates in the city, which can be a major source of money. We also believe we can make more money from the building services offered, and other commercial opportunities available.
“The council is in a very different financial position than it was when the original contract was signed, so we had to look at what we can do better.”
Cabinet will be asked to agree to consult on the proposal to terminate the Amey contract, and other budget proposals at its meeting on Monday, February 6. People can take part in the budget consultation from 5pm on Friday January 27 by visiting www.peterborough.gov.uk/budget.