Advocates have slammed the City of Perth council's decision to reject the relocation of a homeless centre, a move necessary to expand services, and Lord Mayor Basil Zempilas's push to drive homelessness services out of the city.

The council unanimously voted last Tuesday to block Ruah relocating its daytime drop-in centre, despite officers advising there were no planning grounds for refusal, 200 metres from its existing location on Shenton Street to James Street.

Ruah plans to use its current site to establish a centre for women and children facing family and domestic violence, while moving their other services to the new site nearby.

Mr Zempilas is pushing for the decentralisation of homelessness services from within the Perth local government area to other councils.

He also advocated for more crisis accommodation, a network of support workers, and a staggering or extension of opening hours of day centres.

Mr Zempilas said WA's homelessness services were overrepresented in the City of Perth, claiming 90 per cent were based there.

Homelessness Minister John Carey rejected the claim, pointing to data showing 10 per cent of the state's homelessness programs were based in the City of Perth.

Noongar community advocate Des Blurton said resources need to be prioritised where they were most needed.

"They spent $44million on Yagan Square," he said.

"That is not helping our homeless mob.

"There is a problem where our mob get stuck in the city (so) we need targeted resources, instead of putting funding where it is not needed."

Mr Blurton said driving services out of central Perth would leave many without support.

A WA Council of Social Service spokesperson said the council's decision was disappointing.

"The current site has been home to the service for more than 63 years, and its move is integral to a redevelopment at the current site which will host a new centre for women and children," they said.

"Removing services for the most vulnerable in the community will not make the city a safer place, especially for those who find themselves without a home.

"People will continue to need assistance in the CBD."

A City of Perth spokesperson said the council's decision was unanimous after considering the best interests of ratepayers.

"The majority of services, required by homeless people in the broader metropolitan area, are based in or close to the City of Perth," they said.

"That is broader than just actual beds and accommodation and includes services.

"The Lord Mayor has continually advocated for a decentralisation of service providers and facilities."

Ruah has lodged an appeal at the State Administrative Tribunal against the council's decision.

Uniting WA co-chief executive Michael Chester, which runs the only other drop-in day centre in central Perth, told WAToday the decision would increase pressure on its service.