The council is considering dismantling Education Leeds before its contract expires in September this year.
The body, a partnership with private firm Capita, was set up in 2001 following a critical Ofsted report and government intervention. Since it was established, the council's Ofsted rating has jumped from "failing" to "highly satisfactory" and it could now finally be removed from government intervention.
The council's executive member for education, Richard Harker, said: "There is every chance the secretary of state will remove the intervention and, technically, there are options that were not there before."
He said the council was considering using a different body to provide its education services. "I would expect there to be an outside body involved - whether that's the same people involved now with Education Leeds or someone else, that's a decision we have yet to make."
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