In a speech last week to the Scottish Parliament, Peacock said the review will start in March and, if necessary, legislation would follow.
"The process will help inform what system we need for the 21st century," said Peacock, who emphasised that the Scottish Executive remains committed to the principles of the system.
The first stage of the review will ask people and organisations their views on the system. The second phase, due to start this autumn, will focus on what specific improvements should be made.
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