Parramatta Council would take over vast swathes of western Sydney, doubling its size and nearly trebling its population, under a radical proposal to create a "new council at the centre of global Sydney".

The ambitious plan would see Parramatta engulf all of Holroyd, large parts of Auburn, half of Ryde and part of the Hills and Hornsby to form a new local government area.

It would also see the city nab key economic hubs such as Sydney Olympic Park, Macquarie Park, Macquarie University and the recently developed Epping Town Centre.

If councillors vote to accept the proposal at Monday night's council meeting it would become the boldest gambit under the Baird Government's plan to encourage council mergers. The plan would form Parramatta's submission to  the  Independent Pricing and Regulatory Tribunal, which is judging councils' "fitness for the future".

In a leaked email, Parramatta's chief executive Greg Dyer wrote that Local Government Minister Minister Paul Toole was "very supportive of our position and strongly encouraged us to make an alternative submission should council so decide, which demonstrated a broader vision for the future of the LGA and its role in global Sydney".

The proposed council would potentially represent about 460,000 residents in the near term, a figure projected to grow to 600,000 by 2031. The current Parramatta Council represents about 184,600 residents.

Parramatta's current operating revenue is $181.5 million, while it would increase by more than 300 per cent to $483 million under the proposed council.

The plan variously refers to creating an "expanded Parramatta City Council", a "new council", and a "new greater Parramatta Council".

"An expanded Parramatta City Council must have the capacity to influence Western Sydney's economic development, drive planning outcomes at the sub-regional level and provide services and build infrastructure and assets which have significance to a larger community and economic region," the proposal says.

If passed by the council it would submitted as an "alternative proposal" to the Independent Local Government Review Panel's recommendation that Parramatta merge with Holroyd, Auburn and parts of Ryde and the Hills. 

The proposal states that Parramatta was unable to secure support from its neighbours to consider the merger option, but its analysis showed that "a larger council serving the Parramatta economic region has a sound strategic logic" and could meet the Fit for the Future benchmarks.

It notes that the suggested new local government area is "indicative only" and Parramatta would work with the NSW government to determine the exact boundaries.

It also calls for new legislation to give the expanded council the same power as the City of Sydney, including when it comes to elections and voting eligibility, planning and traffic control.

"This is to recognise the administrative and economic importance of the Parramatta region and its unique position in situation facilities and holding events of local, regional, national and economic significance," it says.

The proposal will no doubt displease the other five councils involved, which would be unlikely to want to give up their territory, including their main economic hubs.

Holroyd Council, which would be rendered non-existent under the new proposal, is adamantly against merging.