Brighton and Hove City Council is one of 12 public sector bodies that have agreed to work together to cut stationery bills over the next three years.
The council’s cabinet decided to continue to lead the Sussex Stationery Consortium, claiming that it would save up to 40 per cent on the cost of goods such as paper.
East Sussex Fire and Rescue Service is also part of the consortium which includes East Sussex County Council and nine district councils.
The consortium has worked together for ten years and will retender a combined contract for a further three years.
The contract is worth about £1.2 million a year. About £465,000 of the total is expected to be spent by Brighton and Hove.
Council leader Mary Mears said: “Our council is proud to be leading on this contract.
“Buying as a consortium is much more efficient and saves taxpayers money.”
The council will now invite bids for the three-year contract, which will also have environmentally friendly conditions written in.
These include ensuring that paper comes from sustainable sources, using local suppliers whenever possible and a commitment to recycling.
A report to the city council’s cabinet said that the existing contract would expire on Wednesday 1 December.