Electronic and postal votes, which had yet to be processed when the Examiner went to print on Tuesday, are expected to decide the victor after Saturday's poll had failed to produce a clear majority for either party.

As of Wednesday afternoon, independent incumbent Mr Palmer led Labor's Ms Anderson by the narrowest of margins (50.21% to 49.79%) with 38,391 votes counted.

There were a total of 45,516 mayoral votes cast in the last election in 2017.

A NSW Electoral Commission spokesperson told the Examiner that pre-poll votes, numbering more than 13,000, were being counted Monday and Tuesday.

"Counting of electronic votes is to begin on Wednesday afternoon and postal votes will be accepted right up until December 17," the spokesperson said.

The make-up of the council is expected to see possibly four newcomers - Ms Anderson and Matt Bailey (Liberal) in east ward, Labor's Jason Wells in central ward and Labor's Peter Francis in west ward.

Roz Armstrong's (Labor) position in east ward will be determined after the mayoral vote has concluded.

Ms Anderson said that regardless of the mayoral outcome, she had been buoyed by the fact that she would be filling a spot on the council in her first tilt.

"The close contest just shows how every vote counts and that the number of informal votes could prove to be the difference. I will be waiting patiently for the result."

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She said she hoped to be a role model for future women thinking of entering local government.

"At best we will have two women on the council and if I don't win the mayoral vote I will be the lone female representative. I will make it my mission to give women something they can aspire to."

Mr Palmer said he knew the mayoral election was "always going to be a very tight race" and would be ready to "hit the ground running" either as mayor or east ward councillor in the new-look council when it resumed in January.

"It has been a very long campaign, this has been 18 months in the making, but we kept a very positive campaign all the way through. For a independent group of family and friends who worked hard throughout to campaign, going up against the might of a 100 year old organisation [Labor Party], to still be in the fight like this, it shows that democracy in Australia works," Mr Palmer said.

"It will be a very short term for this council. I hope the 10 individuals elected listen to and represent their community."

The make-up of the full council is not expected to be finalised until all postal votes are delivered.

West ward's Giacomo Arnott, who is expected to return to council, said that it was looking "very likely" that Mr Francis [Labor's number two on the ticket] would be elected ahead of independent Peter Kafer's second pick, Raymond Terrace solicitor Lea Smith.

"I am thrilled with the result from the weekend. It's very clear that locals in Port Stephens are sick of being ruled over by an elite class of councillors," Mr Arnott said.

"To have Labor members joining me as councillors is fantastic... in bringing balance and respect to the job and we will always listen to locals first and foremost. I'm looking forward to a council that listens to residents and prioritises its work in line with community expectations, not councillor desires."

Mr Kafer, a councillor between 2008 and 2017 and likely to return in the new council, said he was happy to gain more than 40% of the vote.

"Running an independent campaign during a COVID election against the Labor Party was hard work so I'm more than happy with the result," he said.

Mr Wells said he is excited to be elected and have the people put their trust in him. "It's my first time running for public office and I appreciate the support of the community. I won't let you down."

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Central ward incumbent Steve Tucker, who is expected to win back his seat, said that he hoped the new council would be more stable and productive.

"It is only a small term (less than three years) and there are some unfinished projects in central ward that I would like to get done before 2024."

Fellow central ward incumbent Chris Doohan, who is also expected to win back his seat, said he was "elated" with the support from the Medowie community - having gained the most votes from the town - and was "delighted that people know what an independent can bring to the community".

Mr Bailey said it was "very rewarding" to be elected in his first campaign.

"The hard work starts now," he said.

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