Preparatory utility diversion works will now begin on the extension, which will connect the Midland Metro to Wolverhampton’s bus station and railway station, due to open in 2019.

The route will take trams along Pipers Row, stopping directly outside the bus station before continuing on to the railway station which will also be redeveloped as part of the Wolverhampton Interchange Project.

The Metro scheme is being carried out by Transport for West Midlands, the transport arm of the West Midlands Combined Authority  in partnership with the City of Wolverhampton Council and Neptune Developments.

The project will support the ongoing redevelopment of land next to the railway station which is expected to see £120m of investment and 1,400 new jobs.

Cllr Roger Lawrence, leader of City of Wolverhampton Council, said: “If we are to succeed in revitalising our city then we must have the right transport infrastructure in place to open up new areas for redevelopment and underpin our long term ambitions.”

Steve Parry, managing director of Neptune Developments, said: “The announcement is great news for the Wolverhampton Interchange scheme as the Midland Metro extension is the element that will tie the commercial developments and the new bus and railway stations together.”