diff --git a/extensions/sql-bindings/src/common/azureFunctionsUtils.ts b/extensions/sql-bindings/src/common/azureFunctionsUtils.ts
index 6c6af956a639..e5cf02b9d583 100644
--- a/extensions/sql-bindings/src/common/azureFunctionsUtils.ts
+++ b/extensions/sql-bindings/src/common/azureFunctionsUtils.ts
@@ -2,7 +2,6 @@
  *  Copyright (c) Microsoft Corporation. All rights reserved.
  *  Licensed under the Source EULA. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
-import * as os from 'os';
 import * as fs from 'fs';
 import * as vscode from 'vscode';
 import * as path from 'path';
@@ -133,32 +132,6 @@ export async function getAzureFunctionsExtensionApi(): Promise<AzureFunctionsExt
 	}
 }
 
-/**
- * TODO REMOVE defaultSqlBindingTextLines
- * Overwrites the Azure function methods body to work with the binding
- * @param filePath is the path for the function file (.cs for C# functions)
- */
-export function overwriteAzureFunctionMethodBody(filePath: string): void {
-	let defaultBindedFunctionText = fs.readFileSync(filePath, 'utf-8');
-	// Replace default binding text
-	let newValueLines = defaultBindedFunctionText.split(os.EOL);
-	const defaultFunctionTextToSkip = new Set(constants.defaultSqlBindingTextLines);
-	let replacedValueLines = [];
-	for (let defaultLine of newValueLines) {
-		// Skipped lines
-		if (defaultFunctionTextToSkip.has(defaultLine.trimStart())) {
-			continue;
-		} else if (defaultLine.trimStart() === constants.defaultBindingResult) { // Result change
-			replacedValueLines.push(defaultLine.replace(constants.defaultBindingResult, constants.sqlBindingResult));
-		} else {
-			// Normal lines to be included
-			replacedValueLines.push(defaultLine);
-		}
-	}
-	defaultBindedFunctionText = replacedValueLines.join(os.EOL);
-	fs.writeFileSync(filePath, defaultBindedFunctionText, 'utf-8');
-}
-
 /**
  * Gets the azure function project for the user to choose from a list of projects files
  * If only one project is found that project is used to add the binding to
@@ -276,7 +249,7 @@ export async function addNugetReferenceToProjectFile(selectedProjectFile: string
 export async function addConnectionStringToConfig(connectionString: string, projectFile: string): Promise<void> {
 	const settingsFile = await getSettingsFile(projectFile);
 	if (settingsFile) {
-		await setLocalAppSetting(path.dirname(settingsFile), constants.sqlConnectionString, connectionString);
+		await setLocalAppSetting(path.dirname(settingsFile), constants.sqlConnectionStringSetting, connectionString);
 	}
 }
 
diff --git a/extensions/sql-bindings/src/common/constants.ts b/extensions/sql-bindings/src/common/constants.ts
index f7fda5da4d27..e3c131585de6 100644
--- a/extensions/sql-bindings/src/common/constants.ts
+++ b/extensions/sql-bindings/src/common/constants.ts
@@ -10,21 +10,14 @@ const localize = nls.loadMessageBundle();
 
 // Azure Functions
 export const azureFunctionsExtensionName = 'ms-azuretools.vscode-azurefunctions';
-export const sqlConnectionString = 'SqlConnectionString';
 export const linkToAzureFunctionExtension = 'https://docs.microsoft.com/azure/azure-functions/functions-develop-vs-code';
 export const sqlBindingsDoc = 'https://aka.ms/sqlbindings';
-export const defaultSqlBindingTextLines =
-	[
-		'log.LogInformation(\"C# HTTP trigger function processed a request.\");',
-		'string name = req.Query[\"name\"];',
-		'string requestBody = await new StreamReader(req.Body).ReadToEndAsync();',
-		'dynamic data = JsonConvert.DeserializeObject(requestBody);',
-		'name = name ?? data?.name;',
-		'string responseMessage = string.IsNullOrEmpty(name) ? \"This HTTP triggered function executed successfully. Pass a name in the query string or in the request body for a personalized response.\" : $\"Hello, {name}. This HTTP triggered function executed successfully.\";'
-	];
-export const defaultBindingResult = 'return new OkObjectResult(responseMessage);';
-export const sqlBindingResult = `return new OkObjectResult(result);`;
+export const sqlConnectionStringSetting = 'SqlConnectionString';
+export const azureWebJobsStorageSetting = 'AzureWebJobsStorage';
+export const azureWebJobsStoragePlaceholder = 'Enter your Azure Web Jobs storage connection string';
 export const sqlExtensionPackageName = 'Microsoft.Azure.WebJobs.Extensions.Sql';
+export const inputTemplateID = 'SqlInputBinding';
+export const outputTemplateID = 'SqlOutputBinding';
 export const functionNameTitle = localize('functionNameTitle', 'Function Name');
 export const selectProject = localize('selectProject', 'Select the Azure Function project for the SQL Binding');
 export const azureFunctionsExtensionNotFound = localize('azureFunctionsExtensionNotFound', 'The Azure Functions extension is required to create a new Azure Function with SQL binding but is not installed, install it now?');
@@ -65,7 +58,6 @@ export const noAzureFunctionsProjectsInWorkspace = localize('noAzureFunctionsPro
 export const addPackage = localize('addPackage', "Add Package");
 export const createNewLocalAppSetting = localize('createNewLocalAppSetting', 'Create new local app setting');
 export const createNewLocalAppSettingWithIcon = `$(add) ${createNewLocalAppSetting}`;
-export const sqlConnectionStringSetting = 'SqlConnectionString';
 export const valueMustNotBeEmpty = localize('valueMustNotBeEmpty', "Value must not be empty");
 export const enterConnectionStringSettingName = localize('enterConnectionStringSettingName', "Enter connection string setting name");
 export const enterConnectionString = localize('enterConnectionString', "Enter connection string");
diff --git a/extensions/sql-bindings/src/services/azureFunctionsService.ts b/extensions/sql-bindings/src/services/azureFunctionsService.ts
index 9cbb76dc09f4..44665933e00c 100644
--- a/extensions/sql-bindings/src/services/azureFunctionsService.ts
+++ b/extensions/sql-bindings/src/services/azureFunctionsService.ts
@@ -55,7 +55,6 @@ export async function createAzureFunction(connectionString: string, schema: stri
 		// because of an AF extension API issue, we have to get the newly created file by adding a watcher
 		// issue: https://github.com/microsoft/vscode-azurefunctions/issues/2908
 		const newFunctionFileObject = azureFunctionsUtils.waitForNewFunctionFile(projectFile);
-		let functionFile: string;
 		let functionName: string;
 
 		try {
@@ -71,41 +70,43 @@ export async function createAzureFunction(connectionString: string, schema: stri
 				return;
 			}
 
-			// create C# HttpTrigger
+			// select input or output binding
+			const selectedBinding = await azureFunctionsUtils.promptForBindingType();
+
+			if (!selectedBinding) {
+				return;
+			}
+
+			// set the templateId based on the selected binding type
+			let templateId: string = selectedBinding.type === BindingType.input ? constants.inputTemplateID : constants.outputTemplateID;
+			let objectName = utils.generateQuotedFullName(schema, table);
+
+			// We need to set the azureWebJobsStorage to a placeholder
+			// to suppress the warning for opening the wizard
+			// issue https://github.com/microsoft/azuredatastudio/issues/18780
+
+			await azureFunctionsUtils.setLocalAppSetting(path.dirname(projectFile), constants.azureWebJobsStorageSetting, constants.azureWebJobsStoragePlaceholder);
+
+			// create C# Azure Function with SQL Binding
 			await azureFunctionApi.createFunction({
 				language: 'C#',
-				templateId: 'HttpTrigger',
+				templateId: templateId,
 				functionName: functionName,
+				functionSettings: {
+					connectionStringSetting: constants.sqlConnectionStringSetting,
+					...(selectedBinding.type === BindingType.input && { object: objectName }),
+					...(selectedBinding.type === BindingType.output && { table: objectName })
+				},
 				folderPath: projectFile
 			});
 
 			// check for the new function file to be created and dispose of the file system watcher
 			const timeoutForFunctionFile = utils.timeoutPromise(constants.timeoutAzureFunctionFileError);
-			functionFile = await Promise.race([newFunctionFileObject.filePromise, timeoutForFunctionFile]);
+			await Promise.race([newFunctionFileObject.filePromise, timeoutForFunctionFile]);
 		} finally {
 			newFunctionFileObject.watcherDisposable.dispose();
 		}
-
-		// select input or output binding
-		const selectedBinding = await azureFunctionsUtils.promptForBindingType();
-
-		if (!selectedBinding) {
-			return;
-		}
-
-		await azureFunctionsUtils.addNugetReferenceToProjectFile(projectFile);
 		await azureFunctionsUtils.addConnectionStringToConfig(connectionString, projectFile);
-
-		let objectName = utils.generateQuotedFullName(schema, table);
-		await addSqlBinding(
-			selectedBinding.type,
-			functionFile,
-			functionName,
-			objectName,
-			constants.sqlConnectionString
-		);
-
-		azureFunctionsUtils.overwriteAzureFunctionMethodBody(functionFile);
 	}
 }