The Minister for Social Justice and Local Government Dr Brian Gibbons AM made a statement on Anglesey Council's Recovery Board.
The council was recently criticised in a report by the Auditor General for Wales Jeremy Colman which said that there were "serious persistent problems" in the council which affected its working.
These included weak self-regulation, inappropriate behaviour and conflict.
In light of the report, Dr Gibbons has given the council two years to improve or the
will take over.
The Recovery Board has been established to oversee the council's operations during this period.