The merging of the two locales is the council's favoured resolution to a naming dispute that arose earlier this year, after the 250 villagers in Penrose, Wingecarribee, petitioned the Geographical Names Board for Wollongong's Penrose to change its name.

In March, it emerged the Dapto suburb had been causing mail havoc for the upper-Penrosians, who said they were there first and had rights to the name.

Their Penrose had existed for more than 100 years, they said, while Dapto's Penrose - home to about 1400 people - was only nine years old.

Wollongong councillors agreed to help resolve the naming debacle by asking the community to suggest new names or look into a possible merger with surrounding Cleveland, Avondale and Marshall Mount.

Just 51 residents responded to the council's call, with Avondale the most popular suggestion with 11 submissions.

Six people suggested it simply be known as part of Dapto, while a handful each suggested it be known as Penrose Valley, Penrose Vale or Penrose Meadow.

Others suggested adding the suffix park, gardens or estate, while three people thought the suburb should be called New Penrose.

Four people did not support any change to the current suburb names.

Due to the low level of engagement, the council decided to develop a short-list and mail this out to all 619 households in Penrose, asking them to mark their preferred option.

"The results show a clear preference for the most favoured option [Avondale] over the nearest two alternatives," the council said of the 239 people who responded.

"Feedback from the engagement process has provided a clear outcome and can be considered as being reasonably representative of the views of key stakeholders."

The engagement process cost the council $10,570, the staff report said, for which it will ask to be reimbursed by the names board.

Councillors will vote on the proposed suburb merger at Monday night's meeting.