Guyra Shire and Armidale Dumaresq Councils will be overseen by one general manager if the move gets the green light from the Department of Local Government.
The single general manager proposal is part of a draft contract for a joint framework drawn up by the two councils.
The plan comes as the councils look to improve efficiencies and make savings in the wake of the failed New England Strategic Alliance of Councils (NESAC).
If the DLG approves, the draft proposal calls for a special committee comprising three members of each council and an independent consultant to be formed to decide whether incumbents Shane Burns (Armidale) or David Cushway (Guyra) gets the GM job.
The councils are also likely to share other executive staff, meaning their will eventually be only one Director of Planning and one Director of Engineering.