A temporary terminus will be installed in Birmingham city centre as part of the Eastside tram extension after transport chiefs said they could not access some of the route for construction until 2026 at the earliest.
The West Midlands Metro stop will be erected in Park Street outside the Clayton Hotel along with infrastructure to allow trams to switch tracks.
The board of the West Midlands Combined Authority will meet next Friday to discuss the project and be asked to approve a £18 million increase to the project's £227 million budget to build this temporary terminus.
It will provide a link to train and bus services at nearby Moor Street station and the Bus Mall respectively and also be a short walk from Birmingham City University and Millennium Point.
Once completed in its entirety, the one-mile Eastside extension will spur off at Bull Street in the city centre and connect up with Digbeth.
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It will have four new stops in Albert Street, outside the new HS2 Curzon Street station, Meriden Street and Digbeth's High Street next to South & City College.
Tracks are already in place along Lower Bull Street in the city centre and Meriden Street and High Street in Digbeth which has also undergone other facelift work as part of wider regeneration plans.
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And preliminary works are now under way on the section between Dale End, across Moor Street Queensway to Park Street.
However, the full extension will open later than planned as construction work on the section of the track passed Curzon Street station cannot begin until HS2 hands over the site which is not expected until 2026 at the earliest, transport chiefs have warned.
In January this year, West Midlands Mayor having previously been hopeful of a 2025 launch.
The project has been designed and delivered by the Midland Metro Alliance on behalf of Transport for West Midlands.
Mr Street said: "Despite ongoing HS2 works at Curzon Street hampering our ability to finish the full Eastside extension until metro is able to get on site at Curzon Street, I tasked transport officials with finding a way to get trams running sooner.
"That's why I'm delighted we've found an innovative solution to part opening the Eastside metro extension. This approach means trams will be running here in 2025/2026.
"Having recently opened the Wolverhampton city centre extension, we know just how popular these schemes are with the public - offering seamless connections to rail and bus services just as this extension will provide.
"As frustrating as the short-term hurdles can be, it's important to remember over the longer term what the final prize is - a vastly improved public transport system which will serve local people and businesses for many years ahead."