Glasgow Housing Association is due to meet to discuss the report

It is claimed an independent report for the GHA found the second stage transfer would cost �507.3m. It is expected to be discussed at a meeting on Friday.

Alex Neil, SNP MSP for Central Scotland, said he had read the report and said the policy for second stage transfer was "in tatters".

The Scottish Executive said it remained committed to second stage transfer.

A spokeswoman said: "We've seen nothing yet that convinces us that this cannot be achieved."

'Black hole'

The GHA refused to comment on the report.

Mr Neil added: "This is the fifth report showing there is a huge black hole here and it needs to be filled."

"The executive has got to come clean and tell us what they are going to do to fund second stage transfer."

The first part of Glasgow's housing transformation was the transfer of all council housing to GHA and the wiping out of a �1bn housing debt.

The next phase involved a second stage transfer of GHA to local community organisations.