The City of Perth appears set to oppose calls for it to embrace a full merger with the City of Vincent.
That is despite the Premier Colin Barnett clearing the path for a full merger of the two councils.
Under State Government's proposed changes to local council boundaries, the City of Vincent would be split between Perth and Stirling.
Both Vincent and Stirling are opposed to the idea, with Vincent pushing for a full merger with Perth.
Early on, this seemed like a possibility with Perth Lord Mayor Lisa Scaffidi indicating qualified support for the idea.
But the ABC understands this is now unlikely with the City of Perth being told such a move would be a drain on its finances.
Ms Scaffidi is not giving anything away.
"The council has not had a final meeting to endorse any particular way forward," she said.
Acting City of Vincent Mayor John Carey says he hopes Perth is not baulking at the idea.
"That would be very disappointing, the reality is we are in a strong financial position," he said.
Councils have until October the 4th to submit their preferred merger plans.