We demonstrate that the presence of a twist phase in a random light beam leads to classical entanglement between phase space degrees of freedom of the beam. We find analytically the bi-orthogonal decomposition of the Wigner function of a twisted Gaussian Schell-model (TGSM) source and quantify its entanglement by evaluating the Schmidt number of the decomposition. We show that (i) classical entanglement of a TGSM source vanishes concurrently with the twist in the fully coherent limit and (ii) entanglement dramatically increases as the source coherence level decreases. We also show that the discovered type of classical entanglement of a Gaussian Wigner function does not degrade on beam propagation in free space.