diff --git a/CHANGELOG.md b/CHANGELOG.md
index f1a14b317e024..b395983b36315 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,9 +6,10 @@
 
 ## v1.40.0 - 
 
-- [workspace] Implement CanonicalUriProvider API #12743 (https://github.com/eclipse-theia/theia/pull/12743 - Contributed on behalf of STMicroelectronics
-- Show command shortcuts in toolbar item tooltips. #12660 (https://github.com/eclipse-theia/theia/pull/12660) - Contributed on behalf of STMicroelectronics
+- [workspace] Implement CanonicalUriProvider API [#12743](https://github.com/eclipse-theia/theia/pull/12743) - Contributed on behalf of STMicroelectronics
+- Show command shortcuts in toolbar item tooltips. [#12660](https://github.com/eclipse-theia/theia/pull/12660) - Contributed on behalf of STMicroelectronics
 - [cli] added `check:theia-extensions` which checks the uniqueness of Theia extension versions [#12596](https://github.com/eclipse-theia/theia/pull/12596) - Contributed on behalf of STMicroelectronics
+- [vscode] Add support for the TaskPresentationOptions close property [#12749](https://github.com/eclipse-theia/theia/pull/12749) - Contributed on behalf of STMicroelectronics
 
 <a name="breaking_changes_1.40.0">[Breaking Changes:](#breaking_changes_1.40.0)</a>
 
diff --git a/packages/plugin-ext/src/common/plugin-api-rpc.ts b/packages/plugin-ext/src/common/plugin-api-rpc.ts
index 7e976a93f2303..50b5147920d10 100644
--- a/packages/plugin-ext/src/common/plugin-api-rpc.ts
+++ b/packages/plugin-ext/src/common/plugin-api-rpc.ts
@@ -1517,6 +1517,7 @@ export interface TaskPresentationOptionsDTO {
     panel?: number;
     showReuseMessage?: boolean;
     clear?: boolean;
+    close?: boolean;
 }
 
 export interface TaskExecutionDto {
diff --git a/packages/plugin/src/theia.d.ts b/packages/plugin/src/theia.d.ts
index a8e0bc8b3b075..49551a05b5ecc 100644
--- a/packages/plugin/src/theia.d.ts
+++ b/packages/plugin/src/theia.d.ts
@@ -12628,6 +12628,9 @@ export module '@theia/plugin' {
 
         /** Controls whether the terminal is cleared before executing the task. */
         clear?: boolean;
+
+        /** Controls whether the terminal is closed after executing the task. */
+        close?: boolean;
     }
 
     /**
diff --git a/packages/task/src/browser/task-terminal-widget-manager.ts b/packages/task/src/browser/task-terminal-widget-manager.ts
index f14a6b4b8f85a..01be5628aab92 100644
--- a/packages/task/src/browser/task-terminal-widget-manager.ts
+++ b/packages/task/src/browser/task-terminal-widget-manager.ts
@@ -93,7 +93,8 @@ export class TaskTerminalWidgetManager {
             for (const terminal of this.getTaskTerminalWidgets()) {
                 if (terminal.taskId === finishedTaskId) {
                     const showReuseMessage = !!event.config && TaskOutputPresentation.shouldShowReuseMessage(event.config);
-                    this.notifyTaskFinished(terminal, showReuseMessage);
+                    const closeOnFinish = !!event.config && TaskOutputPresentation.shouldCloseTerminalOnFinish(event.config);
+                    this.updateTerminalOnTaskExit(terminal, showReuseMessage, closeOnFinish);
                     break;
                 }
             }
@@ -113,11 +114,11 @@ export class TaskTerminalWidgetManager {
                         terminal.taskConfig = taskConfig;
                         terminal.busy = true;
                     } else {
-                        this.notifyTaskFinished(terminal, true);
+                        this.updateTerminalOnTaskExit(terminal, true, false);
                     }
                 });
                 const didConnectFailureListener = terminal.onDidOpenFailure(async () => {
-                    this.notifyTaskFinished(terminal, true);
+                    this.updateTerminalOnTaskExit(terminal, true, false);
                 });
                 terminal.onDidDispose(() => {
                     didConnectListener.dispose();
@@ -211,10 +212,12 @@ export class TaskTerminalWidgetManager {
         return this.terminalService.all.filter(TaskTerminalWidget.is);
     }
 
-    protected notifyTaskFinished(terminal: TaskTerminalWidget, showReuseMessage: boolean): void {
+    protected updateTerminalOnTaskExit(terminal: TaskTerminalWidget, showReuseMessage: boolean, closeOnFinish: boolean): void {
         terminal.busy = false;
-        terminal.scrollToBottom();
-        if (showReuseMessage) {
+        if (closeOnFinish) {
+            terminal.close();
+        } else if (showReuseMessage) {
+            terminal.scrollToBottom();
             terminal.writeLine('\x1b[1m\n\rTerminal will be reused by tasks. \x1b[0m\n');
         }
     }
diff --git a/packages/task/src/common/task-protocol.ts b/packages/task/src/common/task-protocol.ts
index af24fa5ab2812..3e32f3d7b4d1c 100644
--- a/packages/task/src/common/task-protocol.ts
+++ b/packages/task/src/common/task-protocol.ts
@@ -48,6 +48,7 @@ export interface TaskOutputPresentation {
     panel?: PanelKind;
     showReuseMessage?: boolean;
     clear?: boolean;
+    close?: boolean;
     // eslint-disable-next-line @typescript-eslint/no-explicit-any
     [name: string]: any;
 }
@@ -59,7 +60,8 @@ export namespace TaskOutputPresentation {
             focus: false,
             panel: PanelKind.Shared,
             showReuseMessage: true,
-            clear: false
+            clear: false,
+            close: false
         };
     }
 
@@ -90,7 +92,8 @@ export namespace TaskOutputPresentation {
                 echo: task.presentation.echo === undefined || task.presentation.echo,
                 focus: shouldSetFocusToTerminal(task),
                 showReuseMessage: shouldShowReuseMessage(task),
-                clear: shouldClearTerminalBeforeRun(task)
+                clear: shouldClearTerminalBeforeRun(task),
+                close: shouldCloseTerminalOnFinish(task)
             };
         }
         return outputPresentation;
@@ -108,6 +111,10 @@ export namespace TaskOutputPresentation {
         return !!task.presentation && !!task.presentation.clear;
     }
 
+    export function shouldCloseTerminalOnFinish(task: TaskCustomization): boolean {
+        return !!task.presentation && !!task.presentation.close;
+    }
+
     export function shouldShowReuseMessage(task: TaskCustomization): boolean {
         return !task.presentation || task.presentation.showReuseMessage === undefined || !!task.presentation.showReuseMessage;
     }