The City of Melbourne announced on Friday night that Mr Doyle pulled the action in the Supreme Court over alleged sexual misconduct at a Melbourne Health event in 2016.

A trial had been scheduled in the court for two days, starting on Monday.

"We welcome Mr Doyle's decision to withdraw the Supreme Court action as this means we can now proceed with finalising Dr Freckelton QC's independent investigation," council chief executive Justin Hanney said in a statement.

Mr Doyle has strenuously denied all claims against him.

It is not yet known how long it will take for the contents of the report to be released as the council will hold off until a police probe is over.

It was revealed earlier this week that third person, Kharla Williams, formally complained to Victoria Police relating to the event.

"When the police investigation is concluded, the findings of Dr Freckelton's investigation can be made public and we reserve the right to do so in the best interests of all parties," Mr Hanney said.

Police are still to interview her husband, his daughter and the waiter on the night, Mrs Williams noted.

"(Council) Will not publish findings until criminal investigation is over. This will be another 12 months," she told AAP on Friday.

"And police advised due to the variance in balance of probability versus within all reasonable doubt, findings via the civil investigation will not have any weight to outcome."

An investigation into the allegations of sexual misconduct was commissioned by the council's then-chief executive Ben Rimmer, following claims made by two councillors.

Australian Associated Press