Ms Law has been locked in disputes with elected mayor Martin Winter (Lab) since January, when she asked police to probe a regeneration project he had been involved in.
The council has appointed consultant Clive Grace as the 'independent person' required under the chief executives' disciplinary procedure to investigate allegations she bullied senior staff (LGC, 9 November).
Alastair Robertson, secretary of the Association of Local Authority Chief Executives, said: 'She was approached with an offer of a year's salary to settle the matter and said no because she wants to be vindicated of all charges.'
Consultant Stuart Dobson, who was commissioned by the council to carry out a further review, reported this week. He found no impropriety by the mayor, but said the procurement process that appointed Mr Winter as Glass Park project director in 2000 was 'not sufficiently open and transparent'.
Doncaster MBC declined to comment.