Let {Mk} be a degenerating sequence of finite volume, hyperbolic manifolds of dimension d, with d = 2 or d = 3, with finite volume limit M∞. Let \({Z_{M_{k}} (s)}\) be the associated sequence of Selberg zeta functions, and let \({{\mathcal{Z}}_{k} (s)}\) be the product of local factors in the Euler product expansion of \({Z_{M_{k}} (s)}\) corresponding to the pinching geodesics on Mk. The main result in this article is to prove that \({Z_{M_{k}} (s)/{\mathcal{Z}}_{k} (s)}\) converges to \({Z_{M_{\infty}} (s)}\) for all \({s \in \mathbf{C}}\)with Re(s) > (d − 1)/2. The significant feature of our analysis is that the convergence of \({Z_{M_{k}} (s)/{\mathcal{Z}}_{k} (s)}\) to \({Z_{M_{\infty}} (s)}\) is obtained up to the critical line, including the right half of the critical strip, a region where the Euler product definition of the Selberg zeta function does not converge. In the case d = 2, our result reproves by different means the main theorem in Schulze (J Funct Anal 236:120–160, 2006).