The 550m double-track extension will branch off the existing line at a triangular junction at North Pier, running along Talbot Road to Blackpool North station.
It’s not the first time the two have had a tram connection. A connection from North Pier to Blackpool North station and then Layton opened in 1902 but closed in October 1936.
The project includes an intermediate station at Talbot Square.
Construction is expected to begin in early 2018, with commercial services expected to start in April 2019.
In April 2016 the LEP gave conditional approval for a £16.4m grant, with Blackpool Council pledging to contribute up to £4.7m towards the cost of construction.