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The leader of Rochdale Council, Colin Lambert, said he expected the widened review into abuse allegations at the town's Knowl View School will be completed by the end of July.
Led by Neil Garnham QC, the major inquiry will look at claims of historical sex abuse linked to late Liberal Democrat MP Sir Cyril Smith, at premises owned, managed or operated by the council from 1961 to 1995.
Mr Garnham will be tasked with identifying whether there was a pattern to such abuse, whether it was tolerated, facilitated or promoted by the council or its officers and staff, and whether there was a council culture that "inhibited the proper investigation, exposure and prevention of such abuse".
The review into abuse allegations at Knowl View in Rochdale will examine if there was a "culture of abuse" at the school.
The investigation into sex abuse at Knowl View School in Rochdale, linked to the dead MP Cyril Smith, will widen the scope of its review to consider the allegations of abuse, and the town council's reaction to them.
Leader of Rochdale Council Colin Lambert appeared with Sir Peter Fahy, Chief Constable of Greater Manchester, who appealed for victims to come forward and said police trying to trace 'a significant number' of victims.
Chief Constable Fahy also said police have a 'number' of suspects, but have made no arrests at the moment.
Police said these cases are 'extremely difficult' and take time, but his force were determined to carry out a thorough investigation.
The leader of Rochdale Council has announced an external review will be held into allegations of child sex abuse at a school in the region made against the late MP Cyril Smith, as well as an inquiry into allegations of a "cover-up" within the local authority.
"In light of the serious investigations made in the last few weeks we've decided to widen the scope of the review beyond the council's decision-making," Colin Lambert said at a press conference.
Greater Manchester Police said new suspects and victims had been identified and appealed for any victims of abuse to come forward and then police will see if a criminal investigation is justified.
He said there had been no arrests made as yet.
Sir Cyril Smith's family has refuted the sex abuse allegations levelled against the late Liberal Democrat MP.
Police looking into whether there is evidence of a criminal cover-up over allegations of child sex abuse at a school linked to the late MP Sir Cyril Smith are due to hold a news conference this morning.
Representatives from Greater Manchester Police and Rochdale Borough Council will give an update on the claims over Knowl View residential school in Rochdale.
Sir Cyril, who died in 2010 aged 82, was previously a Liberal Democrat MP for the same constituency and is alleged to have sexually abused boys at the school.
Allegations of sexual abuse have been made against Sir Cyril Smith in a new book by the Labour MP for Rochdale, Simon Danczuk.
Sir Cyril was previously a Liberal Democrat MP for the same constituency, and allegedly raped boys at Knowl View residential school and abused boys at the privately run Cambridge House children's care home.
Liberal Democrat President Tim Farron said the party needs to answer "serious questions" about who knew Sir Cyril faced allegations of sexual abuse.
Liberal Democrat leader Nick Clegg last year said the allegations against Sir Cyril should be investigated "to the bitter end".
The President of the Liberal Democrats has said the party needs to answer "serious questions" about who knew allegations of sexual assault had been made against their former MP Sir Cyril Smith.
Police are looking into claims that Sir Cyril sexually abused boys at homes and hostels in Rochdale, where he was an MP. Sir Cyril died in 2010 aged 82.
The party's president, Tim Farron, said a current police inquiry is the best way to deal with the claims, according to the BBC.
Latest ITV News reports
Council chiefs and police said they will investigate claims of a cover-up of sexual abuse said to involve the late politician Cyril Smith.