Councillors are set to consider further the feasibility of taking Edinburgh Trams to Newhaven.
A report will be considered by the Transport and Environment Committee on 4 September and then by Council on 21 September.
The report will set out the case for completing line 1A from York Place to Newhaven and seek approval in principle for the Outline Business Case (OBC) and authority to enter into a procurement exercise to identify a potential contractor for the project.
A final decision on whether to proceed and with which contractor would then be made in autumn 2018.
If the project goes ahead, the construction will take approximately three years and, allowing for testing, passengers could expect to use the service in the first half of 2022.
The estimated cost of the project including construction costs, risk and inflation is £165.2m.
The OBC forecasts patronage on the trams to double in the opening year to almost 14 million while Lothian Buses is projected to continue to perform strongly.
Source: BBC News