Council officers said the local authority is well on track to hit its target amount of £200 million, raised by selling council land, which will be used as capital investment for major regeneration.
The move was welcomed by many local architects, such as Alan Dunlop, of Gordon Murray and Alan Dunlop Architects.
It has been claimed in the past that the private finance initiative (PFI), has led to poor architectural results, and the move toward capital investments should open up opportunities for smaller practices.
Dunlop was particularly in favour of the council's decision, calling it a 'great idea', which would allow for better design.
He said: 'Glasgow City Council has realised that PFI schemes cannot deliver projects like schools, and they will not get the schools they want.
'PFI schemes do not give the time needed to sit down and talk to the people using the schools, such as teachers, to get the best school for those needs.
'The move should also allow younger practices to get involved. Under PFI contracts the schools tend to be clumped together and designed by one of the bigger practices. Hopefully, this should give firms like us more of an opportunity.'