Now construction of the two new lines, which will extend the tram system to Chilwell and Clifton, could begin by the end of the year.

The two consorti bidding for the line are  on tenterhooks for a decision about the preferred bidder.

Vinci is the construction partner behind the Tramlink consortium, while its rival Arrowconnect has enlisted  Volker Rail and Spanish partner FCC as construction partners.

The Government finally approved the project after Nottingham City Council negotiated savings from both Tramlink Nottingham and Arrow Connect for the extensions.

Nottingham City Council’s chief executive Jane Todd said: “This is a very positive development.

“A preferred bidder will now be appointed in the very near future who will work with the council to finalise contracts which will hopefully be signed later in the summer.

“This is crucial for the future of Nottingham’s economy and to attract new jobs to the city.”

NET Line One, the first part of the network, began operating in March 2004 and runs between Hucknall and Nottingham city centre with a spur to Phoenix Park, just off the M1 motorway.