Liverpool Council said it takes the findings of a damning Government inspection report "extremely seriously".
Local Government secretary Robert Jenrick today told Parliament the investigation painted a "deeply concerning picture of mismanagement" at the authority.
Government intervention is now inevitable - though it will stop short of a full takeover of power.
Speaking in the House of Commons, Mr Jenrick said the report highlighted a series of failures across the council, focusing in particular on the planning, property management, highways and regeneration departments.
Each of those areas have been under scrutiny in the Government investigation, prompted by Merseyside Police's investigation into building and development contracts.
Commissioners are now expected to be involved in the running of council functions for three years.
Mr Jenrick did however praise the work of current chief executive Tony Reeves to address concerns.
The inspection was launched following the arrest of then mayor Joe Anderson in December.
He was questioned on suspicion of bribery and witness intimidation and denies wrongdoing.
The report found failings in relation to land disposal, governance and the relationship between elected members and officers.
The council today pledged to address all of the concerns raised and continue its journey of improvement.
The authority said its own improvement plan will be published after the local elections.
Acting Mayor, Cllr Wendy Simon and Chief Executive Tony Reeves, said: “This is a difficult day for our organisation and we take the report findings extremely seriously.
“The inspector’s report has highlighted several failings, but there is a collective commitment from both councillors and officers to learn from these mistakes.
“We would like to reassure all residents and businesses that we will take action to address all of the issues highlighted. We know we need to rebuild your trust.
“It is reassuring that the inspector believes we have made progress in starting to deliver the wholesale changes needed.
“A detailed improvement plan is being drawn up and will be implemented in full.
“We will be open and transparent about the progress we are making on each of the recommendations.
“This includes restructuring the organisation to strengthen our governance and ensure our work is aligned with our pandemic Recovery Pledges and the City Plan.
“At the same time, we will ensure we keep delivering essential services and offering a helping hand to the people of our city.”
