Elected members voted to continue consideration of the proposed tram extension until Edinburgh Council meets again in December, when a full report will be heard. In the meantime, the council will gather additional details in support of any decision to proceed to the first stage of development, including formally writing to Lothian Buses to request what additional dividend resources can be made available to fund activities.

If it is agreed to proceed with the first stage of activities, a nine-month period of project development will commence. The second stage, should councillors agree to continue with the extension, is scheduled to take 21 months and cost £8.3m.

Council Leader, Mr Andrew Burns, said: "I am pleased we have been able to find a way forward for the project, which would deliver a range of key benefits in terms of economic growth, greater accessibility and the environment for Leith and the city as a whole.

"It is now our intention to ensure complete clarity before taking the next step, taking into account the needs of the city's tax payers. I therefore look forward to receiving a report providing further detail on the Outline Business Case before progressing the project to the next stage."