The committee was told the taxpayer would bear the brunt of implementing the settlements that will see female staff being paid the same as their male counterparts.

While many local authorities have said council tax levels could rise by as much as £80 as a result of the settlements, Dundee would not be drawn on how much it will cost city taxpayers.

Ministers have so far failed to underwrite the extra costs as the Scottish Executive insists that councils negotiated the fair pay deal independently six years ago and are liable to fund the agreement.

Pat Watters, of the council umbrella group Cosla, was expected to reveal that the cost is estimated to be between £310 million and £560 million.

Councillor FitzPatrick said he did not expect a decision over the settlement until April, which would give the council a further year to make the payments.

“Dundee isn’t rushing into getting a settlement,” he said.

“I am almost certain it won’t affect council tax levels this coming year.

“They are looking at the longer term and the benefits are that, if the settlement is decided in April, then we have a year to find the money to pay it.

“These are low-paid workers who all deserve the increase and we need to find a way to pay these settlements.

“We hope to find an agreement without involving legal channels, as that would involve more money and the only people that would benefit would be solicitors.

“If they make changes overnight, that would be a problem, but as long as we have a bit of time to find the money, then there shouldn’t be too many problems,” added Councillor FitzPatrick.

“I am confident there are more savings to be made within the council and I am happy to work with the other groups to make sure that savings are made.”

Administration leader Jill Shimi has previously acknowledged they are having to work hard to limit the council tax increase to around 5%.

Even that will only be possible because of controversial plans to transfer five leisure centres out of direct council control to a leisure trust.

It is anticipated that will lead to a net saving of £640,000, without which the council tax would have to go up by approximately a further 1.5%.

The new council tax is due to be set on February 9.

No indicative figure for the coming year was given when the current council tax was set because of uncertainties about the levels of funding from the Executive but, the year before, an increase of 5% was projected for 2006/07.

Dundee’s Band D council tax stands at £1180 and is the second highest in Scotland, behind Glasgow.

A 5% increase would add just under £60, taking it up to about £1240.