The council will be comprised of 37 members including rabbis and community leaders of various denominations of Judaism, according to the mayor's announcement.
In light of these charges, Attorney-General Gali Baharav-Miara submitted a petition to the Knesset to have Edri suspended.
According to a statement, Israel's Federation of Local Authorities is set to meet next Thursday to make plans for the future.
The lawsuit alleges that the mayor followed a man he believed was his spokeswoman's partner and documented him with another woman.
The conference marked the 75th anniversary of the State of Israel and the 125th anniversary of the First Zionist Congress in Basel.