The BBC reported that the council’s director of city development has been “suspended with immediate effect”.
A probe is currently underway into how maintenance contracts were awarded for work on properties across the city.
The council is investigating more than 500 complaints from residents about unnecessary work on properties amid claims of bribery, overcharging and shoddy workmanship.
Edinburgh City Council uses a system of statutory notices to ensure essential repairs are carried out on its historic tenements.
Under the system, the council can intervene to organise repair work on private properties when the owners of shared buildings cannot reach agreement.
When the allegations came to light last year, at least 15 staff were suspended and of those five have been sacked.
Council chief executive Sue Bruce said: “I can confirm that the director of city development has been suspended pending a disciplinary investigation into managerial matters.
“The council has clear procedures in place to handle such cases and it would be inappropriate to make any further comment at this time.”
Andrew Burns, the Edinburgh City Council leader, said: “This is a management matter and I have every confidence that the chief executive will see that it is resolved properly and as quickly as possible.
“I will be seeking regular updates on progress.”