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But councillors warned it could take more than five years to implement and have called on the Scottish Government to provide the funding required to get the project moving.
Paul Sweeney, a Labour MSP and long-term campaigner for improved public transport, said: "It really is a historic day for Greater Glasgow.
"In order to progress any of these options, we need investment from the Scottish Government which now has to step up with real funding and a commitment to support public transport, particularly bus which for too long has been forgotten and now requires urgent action."
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"I am delighted that the SPT board has accepted the recommendation to bring our buses back under public control by making use of the new franchising powers.
Councillors have now challenged the Scottish Government to provide the funding needed to reform the public transport network across Greater Glasgow.
Buses in Edinburgh in contrast remain under local authority control with services in the capital considered among the best in the UK.

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Stephen Dornan, SPT chairman and an SNP councillor, said: "This is a bold and ambitious plan from SPT which sets a strong approach to tackle a declining bus market.
"They claim that the cost of undertaking the franchising process to the point of implementation is estimated at up to £15 million and we will be interested to see exactly how this figure is justified."
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"After three decades of failed Tory privatisation, our bus service is woefully inadequate. Moving to a franchised model is a unique opportunity to turn back the clock on the deregulation and privatisation which has resulted in higher fares and a less reliable service.
Bus services in Glasgow could under go their biggest shake-up in 40 years after transport chiefs backed plans to reverse a massive drop in passenger numbers.
A report from SPT said it had "significant concerns in terms of the efficiency, performance, affordability and overall sustainability of the bus network in Strathclyde."
"The SNP must engage fully with SPT as they explore franchising and ensure they have the support they need to make it a reality."
"Greater Glasgow will join the likes of Greater Manchester and the Liverpool City Region in making use of new franchising powers. The success of Mayor Andy Burnham’s Bee Network in Manchester has seen fares capped at £2 and night buses extended to areas of the region previously left without any night bus service."
"It gives us opportunities to build for growth, and deliver a network that is attractive, accessible, and affordable to both passengers in our communities who rely on the bus to get around and those who we need to get onboard by offering an attractive alternative to the private car.
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Ralph Roberts, CEO of McGill’s buses, said: "SPT needs to be very careful not to throw the baby out with the bath water in their quest for power.
"However, any franchising option will take time and investment to establish so we need to look at doing something now to halt the declining bus market.
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Alex Rowley, Scottish Labour transport spokesman, said: "Glasgow and the surrounding towns in the Strathclyde area - much like the rest of Scotland - suffers from an overheated and broken bus market that is clearly not delivering for people using bus services.
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Campaigners have long demanded council bosses across Strathclyde step in after the disastrous privatisation of local bus services by the Tories in the 1980s.
Strathclyde Passenger Transport (SPT) will launch a consultation on the best way forward after its board voted in favour today of establishing local bus franchising.
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