The business case for the 11.2km extension was presented by the mayor of the West Midlands, Mr Andy Street, and Ms Laura Shoaf, managing director of Transport for West Midlands (TfWM), at the House of Commons.
The line will run from Wednesbury, on the existing Birmingham - Wolverhampton route, to Brierley Hill, serving Great Bridge, Horseley Heath, Dudley Port, Dudley town centre, the Waterfront and Merry Hill.
This extension is part of a larger plan to extend the system, which also includes a proposed extension to Wolverhampton interchange and the planned HS2 terminal at Curzon Street in Birmingham.
“I said in my manifesto that starting work on this project during my first three years in office was a priority and securing the funding is the first step, which is why I wanted to see the secretary of state so quickly,” says Street. “It will more than halve journey times from some of the stops along the route into central Birmingham."