The decision was made at a meeting held by the party's 32 remaining members on Saturday. They discussed the fate of the organization and had to consider whether they should merge with another municipal organization, dissolve the party or continue to exist..
Union Montréal has been facing much criticism following testimony before the province's corruption inquiry.
The party's membership has been cut in half since Gérald Tremblay's resignation as mayor of Montreal last November.
Saturday's meeting comes days before Bernard Trépanier, the man formerly in charge of the party's financing, is expected to testify before the Charbonneau commission.
Several witnesses at the inquiry alleged Trépanier was an important force in a system of collusion and corruption in the handling of public works contracts for the city.
Union Montréal leader Richard Deschamps said the party will look at its current status.
"We are reflecting and we will work for Montrealers," he said.
Lachine municipal councillor, Bernard Blanchet, said the public's view of the party has affected everyone involved with it.
"It's very difficult for everyone. Everyone has families and everyone hears about it from left and right," he said.