Dozens of parents whose children attend Clarence House nursery in Maryhill feel they are being punished after a council executive said "not that many places are available" in council-run nurseries for children of working parents.
Campaigners from the Hotspur Street facility say they have been left stranded after the council announced it would no longer be funding places at the facility.
Since the announcement that the funding was to be withdrawn, the local authority have done a U-turn and decided to reinstate funding for some places for youngsters in their pre-school year.
However, parents whose children are not going to school next year could be forced to move their children or shell out to cover nursery fees.
The group have launched a petition and are planning to join with other parents throughout the city to protest against the decision in George Square.
Shirley Hexley, head of Clarence House nursery, said: "It is an outrage that Glasgow City Council think it is acceptable for young children to move to another nursery in order to access their "free" hours of pre-school education."
One parent, who did not wish to be named, said she was "shocked and saddened about their decision as it seems cruel to move children from a lovely nurturing nursery because the council are cost cutting."
In an e-mail to one concerned parent, Maureen Mckenna, executive director of education at the local authority, said: "We try to also provide places for working parents, but the reality is that not that many places are available in council nurseries for working parents as our priority must be on meeting our duty in the legislation and supporting vulnerable families."
A council spokesman said: "The council established a procurement process with clear criteria.
"Quality is, as parents would expect, the most important of these and where nurseries have seen the number of places they are asked to provide fall it is because others have performed better.
"In some areas, the council has also increased its own provision.
"There has been no reduction in funding - we are spending more than ever before, including a 20% increase in fees for partner nurseries."