The development of thermal filamentation (TF) instabilities in a current-carrying plasma shell under the action of the plasma self-radiation was analyzed in terms of a small perturbation theory. A stationary collisional radiative model was used to calculate the parameters of the bremsstrahlung, recombination radiation, and spectral line radiation. It has been shown that radiative losses can either enhance or weaken the growth of TF instabilities. The pattern of the effect is governed by the dependence of the energy lost by the plasma due to radiation, Q
Rad, on the plasma temperature T. If Q
Rad increases slower than ∼T, the radiative losses enhance TF instabilities. In the opposite case, that is when Q
Rad increases faster than ∼T, the radiative losses lead to suppression of TF instabilities. When the energy lost due to radiation is greater than the Joule energy input, TF instabilities can be completely stabilized due to radiation. The plasma parameter ranges for which stabilization of TF instabilities may occur due to radiation have been found for aluminum and argon.