A breakaway group of Labour councils, including Aberdeen, have put their threat of legal action against the Scottish Government “on ice” after an offer of talks was made by Holyrood.
The Scottish Local Government Partnership (SLGP), which split from the main Cosla group, wrote to the first minister calling for the government to negotiate on funding settlements.
Scottish Government chiefs have consistently said they will only negotiate with Cosla and not the SLGP – comprised of Aberdeen, Glasgow, Renfrewshire and South Lanarkshire.
But a letter from communities secretary Angela Constance said she was ready to meet with leaders of the group for talks on their “relationship”.
Last Sunday, the SLGP convener and Aberdeen City Council leader, Jenny Laing, gave Nicola Sturgeon just 14 days to respond before mounting a judicial review in the courts.
Last night Mrs Laing said: “We see the government’s offer of talks as a huge breakthrough.
“They were never going to give us equal negotiating rights with Cosla straight away but the fact that they have both recognised their statutory duty to talk to all local authorities… clearly shows that a process is now underway and that will be welcomed by the 1.3 million people we represent across Scotland.
“It becomes very difficult for the first minister to justify freezing out some of Scotland’s biggest councils and leaving the people they represent without a voice at the top table, including those in her own constituency of Glasgow Southside.
“She couldn’t continue to dictate to us which local authority body we are part of. The reason we left Cosla was because we felt powerless to fight the cuts being handed down.
“Nicola Sturgeon is beginning to see sense, which is good news for everyone.”
All four leaders of the SLGP’s member councils are expected to attend the talks with ministers.
A Scottish Government spokeswoman said negotiations on national issues would remain with Cosla.
She said: “Scottish Ministers have been consistent and clear on our approach to engagement with local government.
“We are willing to talk to individual councils and any grouping such as SLGP on matters that concern them, but when it comes to partnership negotiations on major national issues, such as local government funding, health or education, we will only negotiate with Cosla.”