A team of independent auditors has been called in to examine a number of major contracts at Liverpool City Council.
The council wants the auditors to ensure it gets value for money
Chief executive Colin Hilton said the appointment of KPMG to oversee the review was to ensure the council was getting value from its partnerships.
The value-for-money review will look at deals with four public-private sector organisations, including Enterprise Liverpool and Liverpool Direct.
Labour group leader Joe Anderson has welcomed the move.
"I am not against private enterprise being involved with local authorities and I do think they have a lot to offer," said Mr Anderson.
However, he said the value-for-money review was essential to ensure the council continued to get a good deal.
"If we are not receiving a service and we are not receiving a quality service we should not be paying huge sums of money," Mr Anderson added.
The public-private partnership contracts are for a variety of council services including IT services, call centres, street cleaning and manual repairs.