Councillors at Denbighshire County Council have voted to explore the possibility of a voluntary merger with Conwy County Borough Council.
The Welsh Government's White Paper for Local Government Reform aims to cut the number of local authorities from 22 to 12. If councils do not choose voluntary mergers by 2018, they could face compulsory mergers by April 2020.
Denbighshire and Conway will develop a joint expression of interest to merge provided they receive a ‘substantial financial and support package’ from the Welsh government.
Denbighshire's chief executive, Mohammed Mehmet, said the merger could help reduce the level of cuts faced by the council.
However, he also warned: ‘Alternatively, the council could reject the voluntary merger option and concentrate its resources on managing the cuts and maintaining services without being distracted by a merger, at least for the next three years. The choice is a difficult one and should not be made without serious consideration.’
The Welsh Local Government Association (WLGA) has previously warned the White Paper has too many unanswered questions about how reform will affect council funding and future devolved powers.
