The schools watchdog Estyn says the quality of local authority education services for children and young people in Monmouthshire and Merthyr Tydfil is "unsafisfactory".
It is recommending both the authorities should be taken into special measures.
The leader of Monmouthshire County Council, Peter Fox, said today's Estyn report acknowledged schools there are still performing well, but could do better when deprivation is factored in, and that 'special measures' is a wide recommendation, which could include a range of approaches.
He told our Education Correspondent Joanna Simpson that the council is "already working with other authorities" on several education services, and is "already in discussions over how we can work in a more regional approach" over others.
Merthyr leader: Councils must keep 'big' education role
The leader of Merthyr Tydfil County Borough Council, Brendan Toomey, said Estyn's damning report into Merthyr's education services came as no surprise, and the council has instigated a number of improvements.
He told Nick Powell that he doesn't think it's inevitable that education services will move away from councils' control, as "local authorities need to have a big part to play in the delivery of education services, for accountability reasons."
Education Minister: 'We cannot let this situation go on'
Our Education Correspondent Joanna Simpson has been speaking to Wales' Education Minister, Leighton Andrews, who says he agrees with Estyn's recommendation that there needs to be action to improve education services at both Monmouthshire and Merthyr Tydfil councils - and he will be intervening.
Today two councils on different sides of the social spectrum have both been found to be failing their children.
Merthyr Tydil - an economically challenged area - and Monmouthshire - a more affluent part of the country - have both been recommended by the schools inspectorate Estyn to have immediate intervention for their education services.
Monmouthshire's education performance, given the low level of deprivation, was found to be "well below average" when compared to similar schools.
The number of pupils excluded from school is 'too high'. The authority does not support and challenge schools enough. Their prospect for improvement is considered 'unsatisfactory'.
In Merthyr Tydfil, at every stage, standards for pupils are "unsatisfactory." Exclusions are "too high", "too many" young people are not in education, employment or training and attendance at primary schools is "unacceptably low."
The council has not challenged underperformance and it has not responded well enough to past inspections dating back to 2004. This is also not expected to improve.
Five councils have now been recommended for special measures
After today's reports detailing the failings in education in Monmouthshire and Merthyr Tydfil, the number of councils that have been recommended for special measures by the education watchdog Estyn has now reached five.
The others are:
Blaenau Gwent - July 2011 - after Estyn found "systemic" management failures
Anglesey - July 2012 - after Estyn found "unacceptably low" secondary school attendance rates, among other failings
Pembrokeshire - December 2012 - after Estyn found "important shortcomings in leadership"
Monmouthshire County Council: 'We're already tackling Estyn's concerns'
This report is salutary reading and shows that we need to improve the education service for the children and young people in Monmouthshire.
Whilst our schools appear to do very well in national league tables, it is clear that we could be achieving even more, and standards should be higher.
We’ve already started to tackle the issues raised in the inspection and we have dealt with a number of the concerns that Estyn raise.
We have appointed a new Director to lead the education service who starts work with us soon, and in the meantime we have engaged a strong interim management team to lead the service and to tackle issues identified.
Whilst we do not underestimate the challenges ahead, we are confident that our education service will continue to improve.
– Cllr Peter Fox, Leader of Monmouthshire County Council