Councillors are calling for a law change to allow them to refuse or terminate contracts when a firm violates human rights.
The contract is for collecting cash from council premises and leisure facilities until May 2018 and calls were made for it to be rejected over claims the firm was involved in running the Israeli police and prison service.
G4S said the allegations were ‘groundless’ and that it had contracts with Israeli prisons but staff did not operate equipment or come into contact with prisoners. The firm said earlier this year the contracts would not be renewed when they end in the face of mounting global pressure.
A council spokeswoman said there was ‘no legal ground’ to exclude G4S from the procurement process.
The council will now ask the Scottish local authority umbrella body Cosla to lobby the Scottish and UK governments to change the law so councils can take in allegations that contractors have been breaching human rights, regardless of location, when deciding whether or not to award or renew contracts.