Liverpool City Mayor Joe Anderson has stepped down from his post following his arrest last week.
Mr Anderson was arrested last Friday, alongside four other, on suspicion of conspiracy to commit bribery and witness intimidation.
All give men have been released on police bail, pending further inquiries by the police.
Following his arrest, Mr Anderson was suspended by the Labour party, and deputy mayor Wendy Simon took on the role of Labour group leader at the council.
After days of pressure to step down, the mayor has said he will now take a period of unpaid leave, with Ms Simon becoming acting mayor until the end of the year.
In a statement he said: ‘It is important that everyone in Liverpool knows that our leaders are focussed on what is most important to the people; their livelihoods and, with a pandemic still in force, their lives.
‘For this reason, I believe it is important that the city, and government, are reassured that our city is indeed operating in the correct way.
‘I am, therefore, stepping away from decision-making within the council through a period of unpaid leave, until the police make clear their intentions with the investigation on the 31st December.'
He said his arrest had been a ‘painful shock' for his self and his family and added: ‘I am going to focus on co-operating with the police in their ongoing inquiry, as I believe time will make it clear that I have no case to answer.'
Earlier this week, the Ministry of Housing, Communities and Local Government wrote to council chief executive Tony Reeves, calling for regular updates on the council's governance and property dealing.
Liverpool Liberal Democrat councillor Richard Kemp, one of the key people to call for the mayor to step down, is also expected to ask the council for a public consultation on scrapping the mayoral system in favour of a modernised committee model of governance.
