The Executive will not budge from a key commitment to give youngsters of 14 and above opportunities for work-based vocational training, which would involve FE colleges.
The Lifelong Learning Minister also pledged to look at the financial implications for colleges, after The TES Scotland revealed two weeks ago that some colleges were refusing to take pupils because they say they are not funded to do so.
There were also claims that schools were being encouraged to "dump" their most difficult pupils.
Jim Wallace confirmed he was looking at the best way to step up the relationship between colleges and schools and said: "We recognise that there may be some associated funding issues for colleges. If any changes are needed, we shall ensure that these are made."