1,000 jobs were on the line if City Building lost the GHA contract.

Scotland’s biggest housing association is to merge with Glasgow City Building in a move that will safeguard over 1,000 jobs.

Glasgow Housing Association’s parent firm the Wheatley Group will combine with Glasgow City council’s arms-length – but loss-making - building and repairs company to avoid tendering for contracts.

City Building feared that it would lose the Wheatley Group’s contract to maintain and repair its housing stock - the mainstay of its 1,600-strong maintenance team.

Procurement law means that Wheatley Group would have had to put the contract out for competitive tendering when it comes up for renewal in 2018.

The merger however now means the £200 million repairs and maintenance contract will remain with City Building, securing the immediate future for the workforce.

The new organisation will be a 50/50 partnership between the city council and Wheatley Group, meaning neither has a controlling stake.

Talks have been taking place with Wheatley Group about a new strategic partnership with the council

And it is thought the move dispenses with the need to put the deal out to tender for at least 20 years.

A spokesman for Glasgow City Council: “Talks have been taking place with Wheatley Group about a new strategic partnership with the council.

“However, this has still to be further considered by the Wheatley Group board and the council and it would therefore be inappropriate for us to comment further at this stage.”

A Wheatley spokesman said: “The future provision of repairs and maintenance will be considered by Wheatley Board at its meeting on Wednesday.

“Our number-one priority is to ensure our tenants and factored homeowners receive an outstanding service in the years to come, whilst achieving maximum value for money.”