Government intervention on Anglesey will continue until May 2013, according to Local Government and Communities Minister Carl Sargeant.
The minister was making a statement on Anglesey County Council, on 7 February 2012.
In March 2011, Carl Sargeant ordered commissioners to take over the troubled council after years of political infighting.
The Wales Audit Office said that unless the minister intervened further, the council's prospects of a full recovery were poor.
A report into their first three months in charge says there has been "major improvements" in some areas but financial and business planning needs to be improved.
Councillors have been praised for signs of a change in their behaviour.
The minister confirmed that the recovery will not be fully complete before the local elections in May 2013.
Mr Sargeant said: "If the current rate of progress is maintained, if local democracy is renewed, if councillors accept and confront budget challenges and if corporate management is reformed, then there will be a case for decreasing and ultimately ending my intervention."
He added: "I have no doubt it is what councillors want too. Most importantly, it is what the people of Anglesey deserve. If all involved keep that goal in mind, we can and will get there."
Conservative AM for Aberconwy Janet Finch-Saunders expressed her regret and said that this was a "sad day for local govt and for the democratic process".
Plaid Cymru AM for Ynys Mon Ieuan Wyn Jones and Liberal Democrat Local Government Spokesperson Peter Black both welcomed the statement however expressed uncertainty with the government's extended intervention until May 2013.