The Perth City Council has officially been suspended after years of scandal and infighting, a move that bars Lord Mayor Lisa Scaffidi and her fellow councillors from acting in their roles for an indefinite period.

Key points: The Perth City Council will be suspended immediately

The Perth City Council will be suspended immediately Three government-appointed commissioners will take over the basic functions of the council

Three government-appointed commissioners will take over the basic functions of the council The action follows years of infighting among council factions

A panel with royal commission-level powers will now investigate the operations of the troubled council, after Local Government Minister David Templeman ordered an immediate suspension on Friday afternoon.

Mrs Scaffidi and her fellow councillors will remain suspended while that investigation is carried out, with the panel to ultimately make a recommendation to Mr Templeman about whether the council should be sacked.

Three government-appointed commissioners will perform the basic functions of the council during the suspension, while City of Perth staff will continue to undertake their usual duties.

The panel which will investigate the council's operations is yet to be established but Mr Templeman said that would be set up as soon as practicable.

Lord Mayor Lisa Scaffidi and the rest of the Perth City Council have been suspended by Local Government Minister David Templeman. ( ABC News )

'I have drawn a line in the sand'

Mr Templeman called a press conference in Perth where he made it clear the council could no longer continue.

"There was a need to draw a line in the sand and I have drawn that line in the sand," Mr Templeman said.

Outgoing WA Planning Commission chair Eric Lumsden, Committee for Perth director Gaye McMath and retiring City of Rockingham CEO Andrew Hammond will serve as the three commissioners while the council is suspended.

"One of the first things they need to do is stabilise the City of Perth and restore confidence," Mr Templeman said.

Local Government Minister David Templeman announces the suspension of the Perth City Council. ( ABC News: Hugh Sando )

"This will take some time because there is no doubt the status of the City of Perth has been tarnished and we want to turn this around as soon as possible."

"I think the City of Perth residents, the ratepayers and the businesses have now breathed a sigh of relief.

"They have not received good governance and we are going to restore that."

'I have failed': Scaffidi

Mrs Scaffidi responded to the announcement by posting a statement on her Twitter page.

"Today's decision … means that, as the head of the City of Perth, I have failed in my responsibility to deliver to the ratepayers effective local government," she said on Friday.

"For that I apologise to all ratepayers."

The now-suspended Lord Mayor went on to welcome the decision.

"On the other hand, taking off my hat as the Lord Mayor and speaking personally, I welcome the fact there will now be an independent review into the council's activities as recent events (which have not been of my doing and which I have not been able to control) have caused me grave concerns," she wrote.

Suspended Lord Mayor Lisa Scaffidi admitted she carried some blame for the council's dysfunction. ( News Video )

"Having said that, I am not suggesting that there may not be some criticism of my conduct.

"The point is, however, that I have had enough of the finger being pointed at me as the sole cause of this problem. I am not, and I am confident that the investigation will bear this out."

Earlier in the week, when Mr Templeman first flagged he would be suspending the council, now suspended deputy mayor Jemma Green accused Mrs Scaffidi of wanting to take the entire council down.

In response to the suspension, five councillors who are all strong critics of Mrs Scaffidi — including James Limnios, Reece Harley and Ms Green — released a statement through lawyers.

"My clients are looking forward to being part of the [inquiry] process," the statement said.

Meanwhile the city's acting chief executive Annaliese Battista said the decision was a "much-needed circuit breaker" for ratepayers, staff and the community.

"It would be naive to suggest the issues facing the council have not impacted the reputation of the City of Perth," she said in a statement.

"It has been very challenging for city employees."

'Soap opera' had to stop: Cook

Acting Premier Roger Cook said the decision would bring "rationality and sanity" back to the City of Perth.

"We all wanted the soap opera to stop and Minister Templeman has taken decisive action," he said.

"That will be a great relief to the ratepayers of the City of Perth and a great relief to the people who are working at the City of Perth and must be working under a great deal of stress at the moment."

Opposition local government spokesman Tony Krsticevic welcomed the suspension, but criticised the time it had taken to reach this point.

"I am calling on the Minister to make sure that this investigation is fair and thorough and complete, and that the ratepayers of the City of Perth know exactly what has been happening in the City of Perth in the last 12 months," he said.

"It is unfortunate that we had to get to this point, I know the Minister wasn't keen to reach this position and I'm glad that he's been forced … to this point."

"I think all of the councillors should resign, I think the Lord Mayor should resign as well."

Mr Templeman confirmed an allegation had been made that a councillor had taken at least one box of items from Council House, after being told that no items could be removed.

But he refused to elaborate, saying that matter would now be investigated.

Workplace safety fears, travel scandals

The suspension follows heightened turmoil that has been plaguing the council in recent weeks, with chief executive Martin Mileham and his temporary replacement, Robert Mianich, both taking extended stress leave in quick succession, citing "workplace safety" issues.

They were followed this week by a third executive, planning and development director Erica Barrenger.

Perth City Council staff who have gone on stress leave: (l-r) Erica Barrenger, Robert Mianich, Martin Mileham. ( ABC News )

Claims of inappropriate behaviour towards councillors then emerged, with evidence of problems as far back as 2016 revealed in leaked emails this week.

The council has also been heavily impacted by Mrs Scaffidi's long-running gift and travel expenses investigation and deep divisions between groups aligned with and opposed to the now-suspended Lord Mayor.

The suspension will not halt ongoing legal proceedings against Mrs Scaffidi related to the gift and travel saga, even though she will not be acting as Lord Mayor for the foreseeable future.

No quick resolution

There is no firm timeframe for the suspension of the council, but it is likely to be a very lengthy process.

When the City of Canning was suspended in similar circumstances in November 2012, it took 22 months before councillors were eventually sacked and nearly three years before an election was held for a new council.

The usually lengthy timeframe means there are extremely long odds on Mrs Scaffidi returning to work before her third term as Lord Mayor expires next year.

Mr Templeman said it would be up to the three commissioners to determine if councillors would still be paid.