GORDON Matheson is to stand down early as Glasgow City Council leader after a town hall mutiny and dismal by-election results for Labour, the Sunday Herald understands.

Matheson, who previously insisted he would stay in office until February before standing for election to Holyrood, is now expected to resign on August 17.

It is understood he was told by Scottish Labour HQ that his plan to remain until 2016 was unsustainable in light of four crushing by-elections in the city last week.

His handling of a workers’ pay dispute has also angered unions.

The SNP pulled off a clean-sweep in all of Thursday’s by-elections, with the former Labour strongholds of Calton and Craigton seeing swings to the SNP of 25 and 22 per cent.

In Matheson’s own Anderson/City Centre ward, the anti-Labour swing was 20 per cent.

Turnout in Matheson’s ward was just 14.5 per cent, the lowest of the night.

Matheson’s messy exit may now harm his ambition of becoming Scottish Labour deputy.

Voting for the position, which is also being contested by MSPs Richard Baker and Alex Rowley, continues until Friday with the result declared on August 15.

Matheson has been under pressure to quit since he announced his deputy leadership run in June, and said he wanted to become a Glasgow MSP next May.

It infuriated many of his Labour colleagues, who want a leader focused on winning the 2017 council election, not one distracted by trying to get to Holyrood.

Half of Matheson’s councillors even signed a demand for an extraordinary general meeting (EGM) to vote in a new leader, prompting Labour HQ to step in and suppress the rebellion.

However Scottish Secretary Brian Roy is understood to have reassured the rebels last week that Matheson is on his way out.

Former MSP Frank McAveety, who returned to the City Chambers in 2012 after losing his Shettleston seat to the SNP, is now tipped to replace Matheson.

McAveety was previously council leader from 1997 to 1999.

Archie Graham, Glasgow’s deputy leader, may also run for the top job.

A Labour source said: “The rebels have been asked not to press for an EGM and have been given a commitment that Gordon Matheson will stand down on Monday the 17th.”

A union insider confirmed there had been frustration with Matheson, with a recent strike by 70 homeless caseworkers lasting 17 weeks because of “the absence of political intervention”.

Susan Aitken, leader of the SNP opposition in Glasgow, said: “These reports come at the end of a great week which has seen a clean sweep of by-election victories for the SNP and, if they prove to be correct, further highlight how tired and divided Labour in Glasgow are.

“The problems of the Labour party in Glasgow run deep and a change of leader will do nothing to address these problems. It is time to give Glasgow back to the people.

"In 2017 Labour councillors - who have had a stranglehold for too long – can be voted out and replaced by a fresh and forward looking SNP administration that this great city deserves.”

A spokesman for Matheson did not deny there would be an early departure.

He said: “Gordon said weeks ago he'll be standing down. Since then he's been focused on leading the city, campaigning in by-elections and his deputy leadership campaign. He won't be making any further statement on his future at this time."