The Northcliffe Media-owned 74-year-old regional title is switching frequency from mid-August.
It will be published weekly on a Thursday and its pagination is to run to around 140 pages.
It is the second Northcliffe Media-owned title to switch frequency, following the Torquay-based Herald Express, which is shifting to weekly publication.
According to the latest Audit Bureau of Circulations (ABCs), figures, the Scunthorpe Telegraph reported an average circulation of 16,084 copies in the last six months of 2010.
Like other regional newspapers, it has suffered a recent fall in circulation.
Five years ago, it was selling nearly 5,000 more copies.
It is as yet unclear what impact on staff the change will have.
Mel Cook, editor of the Scunthorpe Telegraph, said: "The move to a weekly publication is a reflection of the changes in our readers’ lives. People do not have time to read the newspaper every day.
"However, they still want to know what’s happening in their area. They still want to know about the issues that affect their lives. And they still want the Telegraph to campaign on their behalf."
Northcliffe Media is owned by Daily Mail & General Trust (DMGT), publisher of the Daily Mail.
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