Glasgow has formally signed a City Deal with the UK and Scottish governments to bring in £1.3bn of extra investment.
The scheme will see Westminster and Holyrood give £500m each in additional grant funding to the city and its surrounding areas.
Glasgow and neighbouring councils will supplement this by borrowing £130m.
The cash will be used to pay for major transport and employment programmes. It is hoped the City Deal will boost the area's economy by £2.4bn annually.
It was announced last year that Glasgow would be the first city in Scotland to benefit from City Deal status - an agreement between the UK Treasury and a city region.
Similar deals are already in place in Manchester, Leeds and Liverpool.
The City Deal was signed on Wednesday by Glasgow City Council leader Gordon Matheson; Chief Secretary to the Treasury Danny Alexander; Scottish Local Government Minister Derek Mackay; UK Minister for Universities, Science and Cities Greg Clark and and leaders of the other participating local authorities.
Councillor Matheson described the signing of the City Deal as "a momentous day".
"The benefit this funding will bring to our infrastructure, economy and labour market will be felt for decades through tens of thousands of new jobs and increased competitiveness," he said.
"I look forward to working with all of our partners to deliver this hugely important project in the years to come."
The UK government has already claimed the investment could create 28,000 new jobs over the next 20 years, and could eventually generate around £1.75bn of economic growth in Glasgow every year.
Mr Alexander said the deal would have a lasting impact on Glasgow and its surrounding area.
He said: "This is fantastic news for residents of the city and the Clyde Valley region, as it means those who know Glasgow best - the people who live and work here - can decide where this investment can benefit them and their families most."
Mr Mackay added: "As our largest city, Glasgow is central in driving economic growth.
"That is why the Scottish Government has agreed to invest £500m in a city deal for Glasgow and the Clyde Valley that delivers significant benefits for the region and Scotland as a whole."