The scandal-plagued City of Perth will be suspended, and could be sacked, as the Western Australia government declares councillors' positions "untenable".
It follows the appointment of the council's third chief executive in nine days after the first two took stress leave amid increasing divisions between councillors.
Local Government Minister David Templeman has two options on how to suspend the City of Perth, and says he'll decide on Friday.
"It is now untenable for the council to continue and, therefore, I have indicated to them that it is my intention to suspend the council," Mr Templeman told reporters on Wednesday.
"This is a serious matter and the recent events, including those over the last eight days, has confirmed for me that a line needs to be drawn in the sand."
Mr Templeman may decide to suspend the council immediately and appoint a panel inquiry with powers similar to a royal commission, which can recommend the council be dismissed.
The other option is to issue a "show cause" notice, where the council has 21 days to argue why it shouldn't be removed.
Administrators could then be put in charge for six months.
The council's acting CEO Robert Mianich went on stress leave on Tuesday, eight days after taking over from chief executive Martin Mileham, who also took leave after complaining he felt unsafe at work.
A split has also emerged between councillors loyal to controversial Lord Mayor Lisa Scaffidi and those who oppose her.
Ms Scaffidi returned to her position in January following a four month ban from the State Administrative Tribunal over a travel and gifts scandal.
Ms Scaffidi earlier said it was not good to see a highly regarded CEO or acting CEO go on stress leave.
Mr Mileham went on leave after discovering deputy mayor Jemma Green had organised for law firm Herbert Smith Freehills to investigate a claim against him by a property developer - which proved unfounded - and cost $25,000 in ratepayers' money.
Liberal local government spokesman Tony Krsticevic said the government should have suspended the City of Perth immediately, rather than waiting until Friday.
"There is no reason to wait any longer," he said in a statement.
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