Manchester Dogs Home says hard-up families are opting to save money by not getting their pets neutered.
The sanctuary has already revealed struggling owners were being forced to give up their pets because of mounting food, fuel and mortgage bills.
Now, in a bid to head off a crisis, the cost of neutering has now been dropped dramatically at both Manchester and Cheshire Dogs Homes.
Neutering normally costs between £80 and £150. Both homes are offering the procedure for just £10 for every dog adopted in September.
And they are also giving owners the chance to neuter any dogs they already own at a reduced price of £40 for a male and £55 for a bitch.
Bosses said they were determined not to allow dogs to suffer as a result of the `financially challenging time society is currently experiencing'.
Lisa Graham, manager of Manchester Dogs Home, said: "It's very important for people to be able to afford to neuter their pets.
"Neutered dogs are much less prone to disease and illness and there's a huge problem with unwanted animals.
"The last thing we want is an increase of strays on our streets."
Lisa added: "The credit crunch and the high cost of neutering have put pet owners in a really difficult position.
"We hope all those who adopt a dog throughout the month will take advantage of this."
The M.E.N. revealed earlier this year that the number of unwanted animals has doubled over the past year.
Many of the dogs handed in are from pedigree breeds or are sick and injured. The dogs' home said owners complained that they couldn't afford vet's bills.
Figures showed that during 2007, the dogs' home received around 50-60 dogs a month.
Since the start of this year the numbers of dogs handed in has risen to around 100 a month.
Contact Manchester Dogs Home on 0161 205 7136 or Cheshire Dogs Home on 01925 269 500.
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Giles, Voice of City Fans (02/09/2008 at 07:19)