Dubbo Regional Council mayor Ben Shields will take indefinite medical leave, effective immediately, with deputy mayor Stephen Lawrence to step into the mayoral role.
The announcement followed a public call by six councillors for Cr Shields to resign.
In a signed "media statement" released on Wednesday morning, the councillors called on the mayor to step down and made allegations of "abuse of power, bullying, harassment, threats and intimidation".
No detail of the allegations were provided in the statement.
In a comment posted on his Facebook page after the councillors issued their statement, the mayor said: "I have only ever done what is right for Dubbo".
The councillors have also written to Dubbo Regional Council CEO Michael McMahon calling for an urgent extraordinary meeting to discuss the council's reputation.
In their signed statement, the councillors called on members of the community who had concerns about their "interactions with the mayor, (or indeed any other councillor), to come forward and contact council as soon as possible".
"This could be through councillors or senior staff," the statement said.
"All councillors contact details are readily available on the council website. Members of the community who come forward will be respected and supported.
"We call upon the mayor to resign as mayor and as a councillor."
Deputy mayor Stephen Lawrence, councillors John Ryan, Anne Jones, Vicki Etheridge, Jane Diffy and Kevin Parker signed the statement.
It's understood David Grant has also read and endorsed the statement but was unable to sign it on Wednesday. He has been contacted for confirmation.
The group's statement was released just two days after Cr Lawrence and Cr Ryan said they had "lost confidence" in the mayor and raised concerns over public confidence in council processes.
The mayor said at the time that the duo's call for him to resign was a "political stunt" in the lead up to the Local Government elections in September.
The council's brief Wednesday afternoon update about the mayor's indefinite medical leave said: "During this time, Councillor Shields and his family have asked that his privacy be respected".
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