The Fit for the Future package includes $258 million to assist councils that decide to merge and make changes in order to provide better services to the community.

Leeton Shire Council mayor Paul Maytom said further investigation into the funding was necessary, but believed there were other options for his shire.

Last year, the final reports of the Independent Local Government Review Panel and the Local Government Acts Taskforce were released, with Leeton shire recommended to be part of the "Murrumbidgee Joint Organisation (JO)" or amalgamate with Narrandera.

"We've put in a request with the government to be part of a pilot study into the JOs, most likely through RAMROC (Riverina and Murray Regional Organisation of Councils)," Councillor Maytom said.

"I know some councils that are struggling and were already thinking of amalgamating would be very interested in this funding being offered.

"We know there needs to be change and we know the local government minister has been quite clear on there needing to be a reduction in the 152 councils we have in NSW."

The Fit for the Future package is based on the Independent Local Government Review Panel's recommendations.

Councils will have until June next year to submit proposals on how they could be part of the program.

Cr Maytom said the issue would likely be discussed at a meeting with the region's mayors early next month. 

"There are still a lot of issues that need to be looked at and addressed as to how we move forward as sustainable councils," he said.

"We've been working with Narrandera with resource sharing and other initiatives to reduce costs.

"We're certainly not opposed to change, but we need to ensure those changes will work well and help to ensure we remain sustainable into the future."