Farrell’s four-year tenure comes to an end in April, and city chiefs have asked him to file his final report on the capital city before making their decision.
His position has been increasingly unstable following his outburst over Edinburgh’s plans to revamp the waterfront shoreline, as well as his comments on the design of the £498 million tram scheme.
Speaking to the Edinburgh Evening News, Lib Dem council leader Jenny Dawe said: ‘I don’t think it was ever going to be an ongoing appointment – it was something that the former [Labour] planning convener Trevor Davies was key in promoting.
‘But I've had several meetings with Terry Farrell, and there is a legacy because the council takes design much more seriously now. I know he is quite keen to write this report, and he may recommend that there should be another appointment.’
Labour group leader Ewan Aitken said: ‘We need eyes like his to understand what we need to do, and it would be short-termism to cut the position.’
Farrell declined to comment.