Minister for Local Government Shelley Hancock said it followed a recommendation from interim administrator Viv May for more time so he can continue to restore the proper and effective functioning of the council.

"I am satisfied that this extension is necessary to allow Viv May to continue his efforts to restore stability, address reputational, financial and organisational issues as well as appoint a new general manager and boost morale for council staff and the community," Mrs Hancock said.

"Mr May has done an outstanding job to date and I thank him for his efforts in very challenging circumstances.

"The NSW Government is committed to ensuring the Armidale community has a council that is serving its best interests."

Under the Local Government Act, the Minister can extend the period of suspension for up to three months if she believes it is necessary to restore the proper or effective functioning of the council.

As required by law, notice has been served on the council and suspended councillors will be advised of the intention to extend the period of suspension.

The current three-month suspension period expires on September 12.