Council is always a noun. It means an assembly of people brought together for discussion or deliberation. Counsel also has a couple of noun senses—(1) the act of exchanging ideas or giving advice, and (2) a lawyer or group of lawyers giving legal advice and conducting cases in court—but it’s primarily used as a verb meaning to advise.
Examples
These writers use council well:
The Brotherhood’s Freedom and Justice Party said it was withdrawing from an advisory council being formed by the military leaders . . . [NY Times]
A New Jersey town council is trying to rein in roosters’ libidos in a bid to keep the noise down . . . [Daily Mail]
And these writers use counsel well:
I should therefore counsel young poets, in allowing for spirit, to value language as incantation and magic. [Paul Hoover Poetry]
But I would counsel against taking any major decisions so soon after your dad has died. [Guardian]