While the councillors will return on Saturday, and the administrator departing, interim general manager John Rayner will remain at Armidale Regional Council in the dual role of financial controller and temporary adviser.
Armidale councillors will be reinstated from December 12 under strict controls and expert supervision as part of a Performance Improvement Order (PIO) issued by the NSW Government.
Minister for Local Government Shelley Hancock made the announcement on Friday, however, cautioned councillors to put their political differences aside and work together in the best interests of the local community.
"A significant amount of time and effort has been invested over the past six months to restore the proper and effective functioning of the council and it's vital that this important work continues," Mrs Hancock said.
"The reinstated councillors have the opportunity to prove that they can do the job they were elected to do and work together in the best interests of the local community."
The PIO places restrictions on councillors' functions and decision-making powers with oversight by the Office of Local Government and the expert supervision of a financial controller/temporary adviser.
"I am pleased that John Rayner PSM has agreed to take on the dual role of financial controller and temporary adviser at the council to provide the financial and governance oversight required to implement the PIO," Mrs Hancock said.
"Mr Rayner has done an outstanding job at the council over the past few months as acting general manager.
"I am confident that the PIO will provide the tools to strengthen the council's finances, governance practices, statutory compliance, conduct and performance.
"I would like to thank interim administrator Viv May PSM and Mr Rayner for their hard work and dedication and wish incoming general manager James Roncon the best of luck in his new role."
The Minister considered the council's submission and interim administrator's final report before making a final determination to issue the PIO.
The council was suspended by Local Government Minister Shelley Hancock in June after a breakdown of the relationship between councillors.
In early September, Mr May was given a second three-month appointment to administrate the council.
Four of Armidale's 11 elected councillors have resigned since the council was suspended, including former mayor Simon Murray.