An extension of the West Midlands Metro network which will connect Birmingham city centre with the new HS2 station has been approved.
Transport Secretary Grant Schapps has handed the green light to the one-mile section of track which will run between the city centre, HS2 in Curzon Street and Digbeth via four new stops.
The line will split at Bull Street where the service will go on to either New Street station and Broad Street or to the Jewellery Quarter, Black Country and Wolverhampton city centre.
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The permission has been granted following an inquiry held by the Planning Inspectorate but this is still subject to a six-week challenge period before being formally ratified.
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A statement from Transport for West Midlands said: "The Government inspector recognised the huge benefits the Birmingham Eastside Metro tram extension will deliver, including assisting the regeneration of Digbeth and attracting further investment and jobs as well as offering residents and businesses fast and efficient links to other parts of the region.
"Our Metro line between Birmingham and Wolverhampton is already undergoing major expansion with construction shortly due to begin on the new line between Wednesbury and Brierley Hill.
"With this approval, Transport for West Midlands is now looking forward to taking the Eastside extension to the next stage of development."
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West Midlands Mayor Andy Street added: "I am delighted the Department for Transport has given the go-ahead for the extension, meaning our ambitious plans for the Metro can move another step forward.
"It is particularly pleasing to see the Government recognise the huge benefits that this extension will bring, not least assisting the significant regeneration of Digbeth.
"We expect the Eastside extension will help attract further investment into the West Midlands, create new jobs and further improve transport links across the region.
"Our public transport network in the West Midlands is undergoing a major overhaul after decades of underinvestment and I am delighted that the Government is right behind our plans."
Other planned work on the Metro network will see extensions to the west of Birmingham city centre, Solihull and Brierley Hill including the Merry Hill shopping centre.