The move came in a written statement from the cabinet secretary for education.
Laura Doel, national secretary at school leaders’ union NAHT Cymru, said: “We’ve campaigned long and hard to end the messy postcode lottery in school funding in Wales which is the product of 22 different local authority funding formulas.
“This system isn’t fair for schools or pupils, and lacks transparency, and we’re pleased the Welsh Government is finally acting upon this.
“We will be studying the details of these proposals carefully to ensure they will create a fairer level playing field across the country when it comes to funding.”
However, Ms Doel said the reforms do not address the wider issue of underfunding in Welsh schools.
She said: “Slicing the pie more equally is a good starting point from which to build a properly funded education system.”