The Berejiklian government is considering using plebiscites to allow residents to decide the future of the state's councils, in a potential major about-turn from one of the Coalition's signature policies.

The use of plebiscites to settle the contentious issue of council mergers would raise logistical and political issues across the state, after multiple councils were already forcibly amalgamated.

But after Gladys Berejiklian declared that she would listen to the community on the topic, it is understood that councils that have not yet merged may be spared amalgamation.

It is unclear what would happen to councils that have been merged, but if the government did not allow residents in those areas to vote on the future of their councils, there would be a certain strong backlash from MPs and residents. Plebiscites are likely.