The Cumberland City Council has voted to remove a book about same-sex families from libraries, sparking controversy.

Environment Minister Penny Sharpe and Youth Minister Rose Jackson have criticized the move for failing to represent diverse family structures.

Arts Minister John Graham cautioned the council about the possibility of losing funding due to the book ban.

Councillor Steve Christou, who proposed the ban, acknowledges not reading the book and is known for creating controversy.

Councillor Mohamad Hussein supports the ban based on religious grounds, despite opposition.

The ban has affected LGBTQ community members and their children, and will be revisited in a council meeting on May 15.

The state government has hinted at a funding review for the council, as the ban contravenes library guidelines.

The issue has the potential to influence federal Labor seats in the upcoming election, with unrest in western and south-western Sydney.

A petition backed by Equality Australia is gaining traction to reverse the council's decision.