The project, called The Future Cities Demonstrator, will investigate what can be achieved by the use of ultra-modern technology.
It will involve a series of projects aimed at improving transport and mobility across the city.
It will develop programmes to promote healthy living, deliver advanced street lighting to address community safety and fear of crime and enhance building energy efficiency to provide affordable warmth.
Glasgow won the funding after a competition oranised by the Technology Strategy Board which involved cities developing innovative schemes to dramatically improve their performance.
It decided Glasgow produced the most powerful proposal from a shortlist which included Bristol, London and Peterborough.
It was described as a strong, local authority led project in partnership with the business and academic communities.
Universities and Science Minister David Willettts said: “With more people than ever before living in our cities, they need to be able to provide people with a better quality of life and a thriving economy.
“This £24m investment will make Glasgow a city of tomorrow, demonstrating how cities can work more efficiently with a reduced environmental impact.
“We are in a global race and Glasgow can keep the UK at the forefront of innovative technology ideas.
“From transport systems to energy use and health, this demonstrator will play a key part in the Government’s industrial strategy and give real insight into how our cities can be shaped in the future.”
The project will aim to address some of the city’s most pressing energy and health needs.
It could develop systems to help tackle fuel poverty and look at long-standing health issues such as low life expectancy.
It will also show how innovative use of technology can improve council services and crime prevention, reduce anti-social behaviour and improve travel infrastructure.
Council leader Gordon Matheson said: “This is a huge boost to Glasgow’s ambitions to build a better future for our city and its people.
“This investment and the work we will be doing will put us at the forefront of innovative and smart cities, not just in the UK but in Europe and beyond.
“Glasgow is a city which is constantly evolving and regenerating and we are always looking to the future.
“Winning this money will put us years ahead of other UK cities in terms of integrating our technological systems to make them work for and talk to each other.
“This will help us to create a more efficient and a more sustainable city which can adapt and move ahead of the technology of the day and make it work for everyone who lives or works in Glasgow.”
Iain Gray, chief executive of the Technology Strategy Board, said: “The global market for innovative approaches to delivering efficient, attractive and resilient cities is growing and UK companies - supported by our world-class academic and research base - are well positioned to exploit it.
“This large-scale demonstrator will show just what can be achieved by innovative use of today’s technology and will help UK companies develop solutions and technologies for the future for the benefit of the UK economy.”