Cherwell District Council and Oxfordshire County Council have agreed to develop joint working arrangements between the two authorities.
The announcement comes after Cherwell said it was minded to end its current joint working with South Northamptonshire Council following proposals for the restructure of local government in Northamptonshire.
Cllr Barry Wood, leader of Cherwell District Council, said: ‘Unfortunately, with the changes likely in Northamptonshire, we can no longer continue the partnership with South Northamptonshire Council, so need to explore other options.
‘We will consider all partnerships that fit with our culture. We do not operate a ‘one size fits all’ policy, but take individual decisions based on customer need and experience.’
The proposals include a joint chief executive for Cherwell District and Oxfordshire County Councils.