Theetge retained employment lawyer Stephen Imm who was set to speak at a press conference later today, suggesting the move has left her outraged.
Imm, of Finney Law Firm, represents former Fire Chief Michael Washington who is suing the city for alleged wrongful termination.
The city announced the suspension while adding that they were conducting an investigation into her 'effectiveness of her leadership', but have given no indication that Theetge has been terminated.
Theetge sparked fury over her response to a brawl in July which saw a white woman being attacked by a group of men, all of which was caught on camera.
The police chief scolded journalists for taking the shocking fight 'out of context' without offering any explanation as to what the context was.
Prior to that, she was sued by cops in her own department over claims she is an anti-white racist who tried to stop Caucasian male colleagues from being promoted.
City Manager Sheryl Long announced the move, she added that Assistant Chief Adam Hennie would step up as interim police chief.
Long said: 'The City continues to face serious public safety challenges that underscore the need for stability at the command level.
'Our focus remains on maintaining stability within the department and ensuring the highest standards of service to our residents.
'I have full confidence in Interim Chief Hennie and the department’s command staff to continue their dedicated work at this time.'
Mayor Aftab Pureval added: 'I fully support City Manager Long's decision. I'm confident that the Interim Chief, our entire police force and our administration will continue to put the safety of our residents above everything else.'
The city was forced into the national spotlight over the brawl which happened in the downtown area of the city.
The mass brawl showed a man and a woman, known only as Holly, being violently accosted by a group of black men.
Holly later said the brutal assault left her with brain trauma, images also emerged showing her severely bruised after the attack.
Seven people were subsequently indicted in August on three counts each of felonious assault and assault, and two counts of aggravated riot.
Theetge said at the time that the large scale riot involved some 100 people, and that six people were subjected to 'unimaginable physical violence'.
It sparked a national debate about public safety and race in the city, with Vice President JD Vance and Elon Musk passing comment on footage of the brawl.
When the Daily Mail visited the city after the brawl broke out, the near desolate streets where dotted with homeless drug addicts openly abusing substances.
More recently three people were shot in the heart of the downtown area last week alone.
That included one man who was shot multiple times and killed inside a vehicle outside a bar in the early hours of Friday.
Besides the problems on the streets, Chief Theetge was accused of anti-white racism and sexism by four department veterans in a lawsuit.
Capt. Robert Wilson, and Lts. Patrick Caton, Gerald Hodges and Andrew Mitchell said in their complaint that her department disfavored and disregarded white men for top positions in the force.
The four claim in their suit that the department disregarded qualifications, time spent with the department and commanders' staffing requests, when picking top brass.
'Plaintiffs, who are White males, were denied all opportunities for preferred assignments due to their race and/or sex,' the complaint states.
They claim the department and the city 'intentionally' and 'disproportionately favored non-white males and/or females'.
The suit, filed in May before the brawl happened, added that the city and Chief Theetge had, 'actively undertaken efforts to promote, advance and make promotion and assignment decision that are preferable to women and minorities'.
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