Members of Birmingham's business community have called for a speedy resolution to the current impasse between Birmingham City Council and Centro over the future of light-rail in the city.

The Government recently gave final approval for a street level metro line through the city centre but Birmingham's Tory-Lib-Dem administration is preparing to publish a feasibility study on their preferred alternative of an underground scheme.

It was due in May, although it is understood that difficulties making the scheme financially viable and attractive to Government have delayed it. Meanwhile, Birmingham's business community has welcomed the prospect of a modern tram network.

"The provision of a modern and efficient mode of public transport is long overdue," said Ian Clark, asset manager for the Brindleyplace development, which would be served by the £72 million extension.

"More than 8,500 people work at Brindleyplace and the development of the metro extension will enable many of these people to more easily access their place of work, not to mention making it even easier to access and enjoy Brindleyplace's many bars, restaurants and leisure facilities.

"We are hopeful that last week's announcement will signal the start of the development process which will see the much anticipated delivery of the extension."

Jerry Blackett, policy director of Birmingham Chamber of Commerce and Industry and chairman of the West Midlands Business Transport Group, said: "We are delighted that the Government's go-ahead means that Birmingham has made a sound business case for the extension of the city's metro system."