The Minister for Local Government Ron Hoenig has requested the Office of Local Government to undertake an investigation into Liverpool City Council.
The Section 430 Investigation will look at whether there has been a breakdown in the council's operations amid ongoing reports about dysfunction and staff matters within council.
Under Section 430, the Deputy Secretary Local Government has the power to carry out investigations into council operations either independently or at the request of the Minister for Local Government.
The Terms of Reference for the Inquiry will be finalised in the coming days and will be available on the Office of Local Government website.
A report into the investigation will be provided to the Minister for Local Government and Liverpool City Council.
Minister for Local Government Ron Hoenig said:
"I've been concerned about the operations of Liverpool Council for some time and it's clear there's a fractured relationship between councillors and staff.
"I've asked the Office of Local Government to undertake an investigation into the Council because the local community needs reassurance that their council is operating properly.
"Elected officials have a responsibility to their communities to operate effectively and efficiently, and I'm concerned about the level of dysfunction within Liverpool Council that is playing out publicly.
"A robust investigation undertaken by the OLG will shore up public confidence and ensure council is focused on delivering for its community."
