The Government's decision to shelve plans for a tram system in Leeds do not jeopardise light rail schemes in the West Midlands, according to public transport bosses.
Instead of investing in the Leeds Supertram project, Transport Secretary Alistair Darling favours spending money on more frequent bus services using new vehicles, dismissing costs for the tram scheme as too expensive.
This follows similar refusals for schemes in Liverpool and Manchester.
After a year's delay while Birmingham City Council conducted a feasibility study into an underground system, Centro plan to submit the final business case for the longplanned street level Midland Metro extensions through central Birmingham and to Brierley Hill in December.
Many now believe the Government has gone cold on light rail and this next £200 million metro phase will also get canned by Mr Darling.
Centro, which promotes metro in the West Midlands, remains confident.
A spokesman said: "We already have Transport and Works Act powers to build and we have positive business cases for both lines. It is not a foregone conclusion and we recognise costs will have risen with inflation during the past year but we know there is a solid case there."
Public transport lobby group Transport 2000 has criticised Mr Darling's decision over Supertram and warned a similar move in the West Midlands would be disastrous.
Campaigner Meera Rambissoon said: "With many more decisions like this, our transport network will get stuck in a rut.
"The provision of modern and efficient network links is vital to the economic performance and sustainability of our city regions and essential if the Government's objectives of regenerating regional economies, managing road congestion and tackling social exclusion are to be met."