It was a system set up as a way of clawing back some of the £800m wiped from the city council�s housing debt.

It was a system set up as a way of clawing back some of the £800m wiped from the city council's housing debt.

Now, with some tweaking, a funding formula established when the Glasgow Housing Association (GHA) came into being in 2003 could mean millions of pounds might stay in Glasgow to be spent on the regeneration of some of the city's most deprived areas.

Glasgow City Council is seeking a meeting with Communities Minister Stewart Maxwell to negotiate changes to the "land protocol", under which cash from the sale of surplus land to private developers after redundant and derelict housing is demolished goes back to the executive.

The council wants it to stay in the city for regeneration in areas such as Gallowgate, Govan and Ibrox, Laurieston, Maryhill, Red Road, Shawbridge, Sighthill and Toryglen.

The £40,000 a unit set aside for the construction of 13,000 new homes would be topped up, while the money would encourage demolition and the establishment of new communities.

It could have implications for other local authorities which hand over their housing stock in future.

Cllr George Ryan, Glasgow's political head of development and regeneration, has been leading the calls for change in the system.

He said: "Glasgow is faced with a once-in-a-generation opportunity to transform some of the most deprived areas of the city.

"There is a surplus of poor-quality social rented housing in these areas for which there is little or no demand, and we need to replace it with high-quality homes for rent and sale.

"If the city can see an agreement reached on land protocol, this will allow us to regenerate eight key areas of Glasgow at no cost to the executive."

Areas such as the high-rise Shawbridge on the south side may not be attractive to private developers but the construction of some high-quality socially rented homes, initial infrastructure work, proximity to the affluent Newlands and Shawlands areas, and motorway and public transport links would change the complexion and value of the area.

Although the campaign is being driven by Labour, it is known to enjoy qualified support among the city's SNP councillors and MSPs.

SNP colleague Alex Dingwall, a city council representative on the GHA board, added: "This sounds like a sound idea to kick-start regeneration, create socially rented homes and affordable properties. Of course we'd be demanding more details from Labour."

Taroub Zahran, the new chief executive of GHA, would only say she supported the regeneration of communities in Glasgow regardless of the funding mechanism.

A spokeswoman said the executive had had positive meetings with the council and added: "We are aware of the issues around the land protocol and are prepared to consider them with the council and GHA."