Melbourne City Council on Thursday released a report recommending the council engage in debate around the "challenges and opportunities" of legalising, decriminalising and deregulating illicit drugs.

The council will on Tuesday night debate a draft strategy for city safety that includes a three-year action plan to make the city a safer, more inclusive place.

The 19-page report aims to identify the underlying causes of crime and violence in the city, instead of just focusing on managing their impact.

Included among recommendations in the report on how to minimise the harm caused by alcohol and other drugs, council officers have recommended undertaking "further research and engage in debate the challenges and opportunities of legalising, decriminalising, and deregulating illicit drugs".

Lord Mayor Robert Doyle and other councillors on Thursday night distanced themselves from this aspect of the report.