Police were called in as part of a “mole hunt” over the leaking of confidential Angus Council documents.
The highly sensitive material emerged in March, sparking a major inquiry within the authority.
The so-called ‘green papers’ related to the planned sale of council offices in the centre of Forfar to pub chain JD Wetherspoon and a judicial review legal challenge over controversial south Angus planning decisions.
At that time The Courier revealed how the authority was poised to sell the Forfar buildings at 5-7 The Cross, which include the office of the Angus Provost, to the pub chain for £350,000.
That figure was £50,000 less than Wetherspoons had offered in an out-of-the-blue approach last year.
The council was set to accept the £400,000 bid, but furore over the closed doors deal and a second higher offer from a local businessman forced a U-turn and the three-storey town centre building was put on the open market.
No firm offers were submitted but Wetherspoons then put a £350,000 bid back on the table.
Councillors finally agreed to the sale, but the authority has refused to confirm that decision.
The judicial review report contained a warning that if the council is unsuccessful in defending the Court of Sessionchallenge to decisions taken overplanning matters including approval of a housing/business park development at Pitskelly Farm, Carnoustie, the total legal bill could hit six figures.
Commercially sensitive reports are routinely considered in private under exempt information procedures and council chiefs were furious over the report details becoming public.
At the latest meeting of the full council, chief executive Richard Stiff revealed the police had been contacted.
Mr Stiff said: “Discussions have taken place with Police Scotland about potential involvement by them to investigate the circumstances that led to this.
“They have spoken to senior officers of the council and have confirmed they would not be taking forward formal inquiries.
“Audit Scotland said the release (of such material) into the public domain is something they should investigate.”
They will be looking at inquiring into processes, including how confidential papers are prepared, shared and distributed and at the end of that process will provide a formal report.
Mr Stiff said it was unchallengeable that some material should be confidential, with processes in place to protect information.
He said a report from an internal review will also be presented to councillors once that inquiry is complete.
“We must treat green papers with the sensitivity they require to maintain the confidential information they contain.”