Councils are set to be stripped of the power to determine development applications above a certain value in a governance shake-up that will mandate the use of independent planning panels across most of NSW.

The move is being seen within government as a probity measure that is hoped will also trump the Opposition's call for property developers to be banned from election to local government.

Opposition Leader Luke Foley called for the ban following the furore over the business dealings of former Auburn deputy mayor Salim Mehajer.

Under the reform due to go to cabinet on Thursday, it would be mandatory for all metropolitan councils to use independent panels to determine applications above a certain value.