A campaign was launched last month with a Facebook page set up in an attempt to save the building in Pollokshaws from further decline.
The school closed in 2011 and since then, has been left in a state of disrepair.
After a petition gathered more than 200 signatures, Glasgow City Council has now agreed to work with the community to develop plans for the building that keeps it as an important landmark in the Pollokshaws community.
A council spokesman said: “At the Community Empowerment Committee, it was agreed that the council would discuss the proposals with the group calling for a new use for the former Sir John Maxwell School building.”
Rona Hutcheson, who started the petition, is delighted with the decision.
She said: “This is fantastic news, I’m delighted, it is a massive step forward. Councillors voted unanimously to make use of the building.
“There is still a lot of work ahead, but we are on the right path. There is huge support from the local community and beyond.
“The community wants to see this building saved. It’s a massive and exciting opportunity to work collaboratively and creatively with the community.”
Although no decision has been made regarding the use of the building, Rona believes that it lends itself well to becoming business units.
Rona continued: “I would like to see it used for community purposes, and it would suit businesses and a community hub.
“The upper floor could be converted to business spaces and the lower level could include a community space.”
An inspection has been carried out on the school by an architect and construction engineer who found that despite severe weather damage and vandalism, the building is structurally sound.
However, work needs to be done to prevent it from further damage.
Ken Andrew, chairman of the Community Empowerment Committee, said: “I think we have to make every effort to maintain that building given the history of the Maxwell family, what they did for this city and why we named it after them.
“At the very least we could make this building secure and charge any working group that comes of this to find the money to make it wind and watertight and thereafter find a use for it.”
Rona added: “We now need honesty from the council and for it to work collaboratively with the community. It is exciting times ahead for the community of Pollokshaws.”