Meagher said it was an “honour to be elected” and she was “committed to delivering”.
Labour, with 10 councillors, will hope their pick can shore up support from Liberal Democrats and Conservatives, whose votes will be vital if they are to remain in power in the capital.
The council’s 61 members will meet on Thursday to decide the authority’s new leadership following a tumultuous few weeks.
The City Chambers has been rocked by claims Mr Day abused his position of power by messaging refugees displaced by the Russian invasion asking about their sexual preferences and to meet up for drinks.
The 50-year-old is also the subject of two separate probes; one by the police into allegations of ‘inappropriate behaviour’, and another by the council into whether he is an unregistered landlord. Furthermore, councillors agreed last week to set up an independent review to establish how any complaints about Cllr Day were handled.
The mounting allegations have sparked calls for him to step down as a councillor.
Kevin Lang, leader of the city’s Lib Dems, said his group had “worked well with Jane Meagher in the past” and was “looking forward to hearing more from Jane on her plans and priorities”.
He added: “The Liberal Democrat group think it’s important to provide stability at the Council, especially as we look to agree a new budget.”
It was rumoured the Lib Dems had identified Cllr Meagher as their preferred candidate, and a Labour group member accused them of “meddling” in the process.
In response a Lib Dem source said: “If Labour think they can just put up anyone to be the new council leader and the Lib Dems will automatically vote for them then they’re wrong.”
It looks increasingly unlikely the Lib Dems – the second largest group with 13 behind the SNP’s 17 – will challenge Labour’s bid to continue as a minority administration, after the group was said to be giving the idea serious consideration last week.
The Lib Dems have been “a fairly reliable group of votes” for Labour since 2022, a party source told The Herald recently, adding that ousting them could result in the Lib Dems being “in office but not in power”.
Katrina Faccenda, the only other Labour city councillor who bid for the group’s leadership, said she stood to “offer a fresh start and alternative to the status quo for the future of Edinburgh Labour”.
Writing on social media she said it was time for “courageous and innovative thinking on how power is distributed across the council”.
And she accused the Lib Dems of playing “political games” to “pretend they are winning in opposition while taking none of the flak of being in administration”.
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Meanwhile Labour infighting spilled onto social media at the weekend, as an argument broke out between City Centre councillor Margaret Graham and Edinburgh South West MP Scott Arthur.
Arthur, the former Edinburgh transport convener who stood down from the council after his election to Westminster in July, posted on X saying the Lib Dems “will have to choose between backing a Labour Leader or paving the way for the SNP to take over the Council”.
He added: “Edinburgh needs a leadership that will work cross-party to put our capital first, and only Labour will do that.”
Graham replied: “There is a time for some politicians to keep quiet. This is one of them.”
She said the Labour group no longer had “the moral authority” to work cross-party, adding: “We should have a bit more respect for the people of Edinburgh.”
Conservative councillors, who are understood to be less favourable to the proposal of installing Meagher as council leader, will meet later on today to discuss their options. Tory group leader Iain Whyte said the result of Labour’s leadership contest suggested they were “running out of options”.
Most political groups in the chamber have strict red lines on who they won’t work with: Scottish Labour leader Anas Sarwar continues to prohibit the party’s councillors from forming formal coalitions, the Lib Dems have ruled out working with the SNP, and both the SNP and Greens refuse to work with the Tories. This makes having a stable majority in Edinburgh nearly impossible.
SNP group leader Simita Kumar said she approached the Lib Dems about working together, which would result in a majority, but said she was told “that is a no go”.
She said: “They are still trying to support Labour by dictating who their leader should be which is unfair for the city.”
A Lib Dem insider said last week it was “impossible” to see such an arrangement working out, adding: “I think [The SNP] are open to anything that has them in power in some way, shape or form.”
Cllr Meagher is currently over 4,000 miles from the capital, having left to visit family in Tanzania before her group was thrown into chaos. She is expected to join Thursday’s meeting remotely.
The housing convener has been thrust into the spotlight over the past week for reasons other than her elevation to Labour group leader. Shelter Scotland launched a scathing attack on the council’s homelessness strategy, calling for new management to be appointed in the housing department.
But council chiefs pushed back against claims councillors had “voted to strip homeless households of human rights”, calling the charity’s press release “factually incorrect and misleading”.
An SNP source said: “It’s a complete embarrassment for Labour that their best option for leader has just been called on to quit by Shelter.
“And failing upwards it looks like she’ll not only become the Labour Group Leader, but quite possibly the council leader if the other unionist parties decide to keep running the city along constitutional lines.”
They added the SNP are “still having serious talks with other parties to see if we can come together to offer a positive, progressive and optimistic alternative”.
Cllr Meagher said: “It is an honour to be elected by my colleagues to serve as leader of the Labour group on Edinburgh City Council. I am proud of the work that we have done in the city to deliver for residents, workers and businesses.”
“Scotland’s capital deserves the best possible representation and that is what I am committed to delivering as leader of the Edinburgh Labour group.”