The Government has confirmed funding for the construction of a further section of the Nottingham tram project.
Phase Two of the scheme will see two more tram lines added to the East Midlands city’s network.
Cost savings were identified on the phase following negotiations between Nottingham City Council and the two consortia bidding for the work.
Tramlink Nottingham and Arrow Connect are bidding for the extensions to Chilwell and Clifton.
Nottingham City Council chief executive said: “This is a very positive development. We have worked hard with the government to ensure that Phase Two is delivered as cost effectively as possible.
“A preferred bidder will now be appointed in the very near future who will work with the council to finalise contracts, which will hopefully be signed later in the summer.”
It is hoped construction will begin towards the end of this year and the extended network will be fully operational by 2014.