Police officers were called to Oldham Council on Wednesday after a meeting was suspended when a row broke out.
Local media reported that references were made to ‘dictators’ and ‘Nazi sympathisers’, and that a protest was also taking place outside the civic centre.
Greater Manchester Police received reports of a disturbance from a member of the public at around 5.30pm.
A spokesperson for the force said: ‘Police are currently investigating reports of racially aggravated public order and enquiries into this remain ongoing.’
The row began as councillors discussed pulling out of the Greater Manchester ‘Places for Everyone’ housing scheme, with members speaking over each other and mayor Zahid Chauhan having to call for ‘silence’.
Taking to X after the meeting, council leader Arooj Shah said: ‘The behaviour by some of the elected members at the meeting of the full council was a step too far.’
She added: ‘I would urge those disruptive members to reflect on their behaviour and remember that we are all there to serve the people of Oldham.
‘We were unable to do that because the meeting had to be abandoned. This is disrespectful, not just to their fellow councillors, but also to the residents we represent.’