Local authorities will be able to cut annual repayments for past school projects by spreading the cost over a longer period.
One council source said: "It is a pretty big deal.
The 1990 private finance initiative (PFI) involved firms building schools and hospitals such as Edinburgh Royal Infirmary then receiving annual payments spanning decades.
Critics believe that rips off the public and is a cash cow for wealthy lenders.
Audit Scotland says the public sector is contracted to pay &pound;40.1billion over 50 years - four times the capital value of the assets developed.
Councils and health boards have to use millions of pounds a year from their budgets to pay off the debt.
Council group COSLA and the Scottish Government have agreed to "remodel" debt over the life of the asset, instead of the shorter life of the contract.
Total debts won't reduce but it's expected to cut the amount paid annually.
COSLA said: "Leaders welcome the agreement by the Cabinet Secretary, as part of the Resource Spending Review.

Councils' PFI debt relief deal 

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is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 87 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.

n. We will also use usage information in order to ensure users adhere to our Terms of Use. For example, a user’s usage information will help us confirm that a user only downloads a magazine or other content a permitted number of times or to a permitted number of devices.

which gives digital readers unlimited access to 8,500+ magazines and newspapers for a monthly subscription price. Magzter also has the largest number of stories in the world with its game-changing ezRead 2.0 feature for its apps, which enables smartphone and small-screen mobile users to enjoy magazine content the way it was meant to be enjoyed, with article text that is easy to read and is accompanied by stunning videos and high resolution photography.

{{magzter}} is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 87 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.