Shrewsbury Shopping Centres said the grotto, at the Darwin Centre, would be open again on Wednesday after being closed for a 'deep clean'.
Kevin Lockwood, Shrewsbury Shopping Centres manager, said that the person affected had been managing the queue system and that other staff had been tested as part of its procedures.
He said: "Sadly Santa’s Grotto in the Darwin Centre has been closed for the past two days for a deep clean after one of Santa’s elves tested positive for Covid-19.
"We share the disappointment of all those children who were hoping to see Santa and we’re sorry that they have been unable to do so, and we wish the elf a speedy recovery.
"The good news is that the grotto will reopen again tomorrow.
"We can reassure parents and visitors that the elf in question wasn’t inside the Grotto, but was managing the queue system, and all other staff members are being tested as a matter of procedure."
He added: "Santa’s Grotto has been open under strict Covid-19 precautions including social distancing and the wearing of masks so visitors can be sure that all measures have been taken to keep them safe."