Prime Minister Malcolm Turnbull has dismissed the body established by Tony Abbott to advise on indigenous issues, as part of a plan to appoint new members and replace outspoken chair Warren Mundine.
The government's 12-person Indigenous Advisory Council was established after the Coalition's 2013 election win, headed by the former Labor Party national president and providing advice on a range of Indigenous issues and practical changes to improve the lives of Aboriginal and Torres Strait Islander Australians.
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In December, the government extended the appointment of Mr Mundine and other council members by one month to January 31, but the Department of Prime Minister and Cabinet said this week all further meetings and council activities had been cancelled.
Cabinet is expected to approve nominations for a new council chair and members as soon as next week.
The move comes as the principal Indigenous adviser position in Mr Turnbull's office has been vacant since September 2016. The role is traditionally filled by a public servant from the Prime Minister's department.
Mr Mundine has openly criticised the government on a range of issues, including the establishment of an inquiry into Indigenous incarceration rates last year.
He said the existing council had been left over from the Abbott government and Mr Turnbull wanted to appoint his own members and "put his stamp on it"
"As our term was put until the 31st of January, that's now gone and so we're out of a job," Mr Mundine told Sky News.
"The move forward now is for the Prime Minister to work through the cabinet process to decide what he's going to do.
"On a professional level I don't have a problem with it, we were there for the Prime Minister's beck and call and he will move forward now."
He said the government should appoint a minister for Indigenous economic issues to help improve the socio-economic standing of Aboriginal and Torres Strait Islander communities
"I looked at those productivity reports and I've looked at the Closing the Gap stuff that's coming up and there is a hell of a lot of work that has got to be done."
Mr Turnbull's office said the Prime Minister remained committed to the council and appointments were currently going through cabinet approval processes.