New South Wales Premier Gladys Berejiklian may ditch forced council amalgamations and even allow de-amalgamation.

Reports say the Premier is preparing to abandon the controversial policy set up by her predecessor Mike Baird.

The Government has already created 20 new councils, while others have been tied up by legal action.

NSW National Party leader John Barilaro issued an ultimatum to Ms Berejiklian earlier this year, saying his party would not force any more local government mergers.

Local Government NSW (LGNSW) president Keith Rhoades welcomed the suggestions.

“LGNSW has spent a lot of today in meetings with Deputy Premier John Barilaro and the newly installed Local Government Minister Gabrielle Upton,” Councillor Keith Rhoades told the ABC.

“It would be inappropriate to reveal the content of those discussions, but I can certainly say they were both constructive and productive.”

The policy has been seen as a major motivator behind the Nationals losing the seat of Orange to the Shooters and Fishers Party last year, during which the Nationals suffered a swing of more than 20 per cent against them.