The website, which had a humorous tone, listed Tony Parrish's occupation as "whistleblower" and interests as "victory".
Mr Cole said: "Whoever it may be I will sue them. I have taken legal advice, and we are prepared to take legal action.
"We are planning action against whoever the blogger was, whether that be one person or several people.
"I have heard all the rumours. If they prove to be correct then I will sue the author and his associates if there are any.
"The evidence from what I hear is in the hands of the council. I will be interested to hear the outcome of the council investigation."
The blog is named after a comment by Cllr Mike Storey in a dossier of e-mails between him and the council's suspended media chief Matt Finnegan, which led to Cllr Storey standing down as council leader.
It focused on alleged conduct by three town hall officials, former chief executive Sir David Henshaw, resources director Phil Halsall and Dr David McElhinney, managing director of the Liverpool Direct call centre.
Mr Halsall declined to comment last night, and Sir David and Dr McElhinney were not available for comment.
The site also heavily criticised the council's approach to Capital of Culture, the departure of artistic director Robyn Archer and an investigation into council contracts with private firms Enterprise and BT.
Earlier this month Merseyside police were called in by council chief executive Colin Hilton, and he blocked council employees from viewing it on municipally-owned computers.
Police said the website did not break the law, but it was taken down 10 days ago.
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