Council bosses are set to approve £3 million funding to design and develop the next stage of the Midland Metro through Birmingham city centre.
The cash, to be approved at next Monday’s cabinet meeting, will be used to draw up detailed plans and a business case for the Metro to be extended from New Street Station to Centenary Square.
Construction on the extension from Snow Hill to New Street Station is currently underway and due to finish next year.
The further extension is the first project to developed under the Birmingham City Centre Enterprise Zone funding deal - under which investment in infrastructure is paid for using future business rates.
A Metro to Centenary Square is seen as a crucial part of the impending redevelopment of Paradise Circus and the Arena Central site, formerly the ATV studios.
Council cabinet member for transport Tahir Ali (Lab, Nechells) said: “Centenary Square is one of the largest public spaces in the city and this project will deliver public transport to two key sites – Paradise Circus and Arena Central. This will help link people to new employment opportunities; provide an alternative to driving; and connect people and the business community to mainline train stations.”
The total cost of the project is expected to run to £30 million - more than half through the Enterprise Zone.
Construction is expected to be completed in 2017.