The statement was made in response to rumours circulating Wollondilly Shire that the announcement of a merger with Wingecarribee, Camden and Campbelltown was imminent.

Member for Camden Geoff Corrigan said he had received assurances from Minister for Local Government Tony Kelly that there were no such plans in the pipeline and described the suggestion as "complete and utter nonsense".

"There are 160 smaller councils than Camden, Campbelltown, Wollondilly and Wingecarribee. They will be looked at first and have been asked to put in proposals," said Mr Corrigan.

Wollondilly Mayor Col Mitchell welcomed the statement, as did Wingecarribee Deputy Mayor Heather Carter.

"I have always maintained that Wollondilly is financially sound and that the council is stable," said Cr Mitchell.

"We are financially responsible and there is no need for it," said Cr Carter.

Earlier this month 10 councils were squeezed into seven. Greater Argyle Council was formed taking in the bulk of Mulwaree Shire and Goulburn City. The remainder of what was Mulwaree became part of the Upper Lachlan Shire.