New councils are to be created across Sydney and NSW as early as this week if Premier Mike Baird's government signs off on merger proposals on Thursday.

The creation of up to 20 larger councils across the state is being accelerated, in part to resolve what could emerge as a political sore for the Coalition ahead of the July 2 federal election.

But councils that have challenged their proposed merger in court will be spared from the amalgamation process, pending the outcome of those court battles.

Mr Baird has also scrapped a number of previously announced council merger proposals.

Radio advertisements were inadvertently booked on Wednesday spruiking the new councils. The councils could be created rapidly, following a recommendation from Local Government Minister Paul Toole and a proclamation by NSW Governor David Hurley.

"The NSW government has created new stronger local councils to provide better local services and infrastructure," the advertisements on Wednesday say.

New Sydney councils that could be created this week include a combined Bankstown and Canterbury council, an expanded Parramatta Council, a merged Auburn and Holroyd council, a Ku-ring-Gai and Hornsby council, and two new inner west councils: Ashfield, Leichhardt and Marrickville, and Burwood, Canada Bay and Strathfield.

Other councils likely to be created across the state include a Gosford and Wyong council, a Wollongong and Shellharbour council, and a Dubbo and Wellington council.

The Nine Network on Wednesday reported that Mr Baird had back-flipped on the creation of a number of councils. These included a merged Kiama and Shoalhaven council, a merged Hills Shire and Hawkesbury councils, and Tamworth and Walcha councils.

Cabinet is set to consider the merger plans on Thursday morning. The plans will then be put to a meeting of the Coalition party room.

If the new councils are created soon, it could provide some resolution to what has been a confusing and politically fraught process for Mr Baird and Mr Toole, as well as the state's local government sector.

But legal challenges and a number of last-minute merger proposals mean the overall situation across the state is unlikely to be settled soon.

The Premier announced plans to overhaul the state's councils in December last year after asking councils to prove their "fitness" for the future, with 35 merger proposals.

The Local Government Boundaries Commission was reinstated to assess reports, prepared by government-appointed delegates, on each of the merger proposals.

But the process, which has triggered heated dissent in many communities, has been repeatedly complicated.

An additional 13 merger proposals, largely initiated by councils under section 218E of the Local Government Act, were also considered by the commission.

The commission, chaired by former NSW Auditor-General Bob Sendt, assessed the proposals against the requirements of the act and handed its final comments to the government on Tuesday.

Last-minute proposals for an expanded Botany Bay Council and mergers between Kogarah, Rockdale and Hurstville, and Port Stephens and Dungog have not yet been considered by the commission and are still open for public comment until June.

A spokesman for Local Government Minister Paul Toole told Fairfax Media this week that the government's decision on council mergers was "expected to be announced by mid-year". However, the timeline has since been brought forward.

The radio ad told listeners on Wednesday to: "Go to stronger councils website for more details."

A website created by the Department of Premier and Cabinet – www.strongercouncils.nsw.gov.au – was password protected.

A new Northern Beaches council consisting of merged Manly, Pittwater and Warringah councils is also a possibility, but may be on hold as Mosman has initiated legal action against the state government.

Councils that have initiated legal action against the mergers also include Woollahra, Hunters Hill, Oberon, Walcha and Carbonne.

Likely partners

Bankstown / Canterbury
Parts of Auburn City / Holroyd City / Parramatta City
Parts of Parramatta City / Auburn City / The Hills Shire / Holroyd / Hornsby Shire
Manly / Warringah / Pittwater
Kogarah / Hurstville
Ashfield / Leichhardt / Marrickville
Burwood / Canada Bay / Strathfield
Ku-ring-gai / Hornsby
Conargo Shire / Deniliquin
Bombala / Cooma-Monaro Shire / Snowy River Shire
Murray Shire / Wakool Shire
Dubbo City / Wellington
Gosford City / Wyong Shire
Tumbarumba / Tumut Shire
Wollongong / Shellharbour

Holding out

Mosman
Woollahra
Hunters Hill
Oberon
Walcha
Cabonne