Glasgow Cultural Enterprises (GCE), which operates the city's Royal Concert Hall, is set to be incorporated into Culture and Sport Glasgow (CSG) as part of a new plan to be drawn up by the local council.

A business plan is to be developed by Glasgow City Council (GCC) examining plans to transfer the organisation, which also operates the City Halls and the Fruitmarket venues, into the operational and organisational structure of CSG. The council commissioned professional services firm PricewaterhouseCooper to carry out a review of the current arrangements after concerns were raised the GCE was experiencing increasing financial difficulties and was unable to generate enough income to invest in its infrastructure.

It is anticipated that the merger could result in savings of more than £500,000, as well as benefiting the city's arts provision through the combination of fundraising and sponsorship expertise of both CSG and GCE. Jean McFadden, GCC's executive member for corporate governance, said: "The venues operated by Glasgow Cultural Enterprises make a huge contribution to the cultural and educational life of the city, not to mention the huge tourism benefits they generate.

"We want to make sure that situation continues and the option we've agreed to take forward today seems to offer clear advantages for the venues and for the city, but we need to explore some issues in more depth." Ellen Hurcombe, chair of the GCE board, added: "We welcome the opportunity to work closely with Glasgow City Council and Culture and Sport Glasgow in the transition process to ensure that Glasgow's Concert Halls are fit for future generations to access as performances spaces and places to experience the broadest range of live music."

A business plan will now be drawn up for the proposed transfer, while a further report is to be put before councillors later this year for a final decision.