Currently local authorities only have the power to tell maintained schools to admit pupils who have been excluded.
Where they consider a local academy school as being the most suitable for a particular child, they currently have to apply to the Education Funding Agency (EFA), which makes the final decision.
But latest government figures show that just 15 of the 121 excluded pupils put forward by councils were taken on by an academy.
The Local Government Association (LGA) says councils require extended powers to ensure such pupils are not discriminated against.
Richard Watts, chair of the LGA's children and young people board, said: "By ignoring local council advice the EFA is allowing academies to effectively choose the children they want to admit.
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