Rival bidder and operator of the existing tram Arrow Connect had enlisted Volker Rail and Spanish partner FCC as construction partners.

Its operations contract will be terminated and passed on to preferred bidder Tramlink.

Construction of the two new lines, which will extend the tram system to Chilwell and Clifton, could begin by the Autumn, with the new lines open for service in late 2014.

Jane Todd, Nottingham City Council’s Chief Executive, said: “We received two very strong bids but Tramlink Nottingham has come out on top.

“We look forward to working with them to develop their proposals before awarding the full contract.”

Suppliers and subcontractors can contact the consortium at [email protected] or by calling (0115) 988 6297