Coun. Jim Little says a bribe offer to an unnamed councillor came to light during an in-camera council session in July. (CBC)

Iqaluit RCMP confirm they are investigating an allegation that a city councillor was offered a bribe in connection to a development permit recently granted for a new medical boarding home.

Coun. Jim Little filed the complaint with police at the end of July, following considerable debate at city council about whether to grant Nova Developers the permit.

Police would not say which councillor was offered the bribe, or who allegedly offered it. Little said the offer of a bribe came to light during an in-camera council session in July.

"It's being investigated," Sgt. Jimmy Akavak told CBC News on Friday.

"We'll know better once the investigation is complete and people have been interviewed that are involved indirectly or directly through this investigation."

The boarding home, which will house patients from outside Iqaluit, is being built on a lot across the street from the old Baffin General Hospital.

Little has expressed concerned about the home's approved location, saying he wanted to see the facility built on another lot beside the new Qikiqtani General Hospital.

Iqaluit Mayor Elisapee Sheutiapik told CBC News she cannot discuss the matter because it came up during a closed-door session of council and is therefore confidential.

Earlier this week, council voted to ban Little from future in-camera sessions because he shared confidential information with his lawyer, his pastor and the RCMP.

Despite the censure by his fellow councillors, Little said he will still seek another term in office. Iqaluit residents will go to the polls on Oct. 19.

"My future in municipal politics is not going to be dictated by some silver-tongued bully," Little said in an interview.

"My future is going to be decided by the electorate, the people in the community. I'm not going to be driven out of council chambers on the whim of a few."