A proposed �200m tram network, to ease Bristol's growing transport problem, moved a step closer on Tuesday when a compromise deal was struck between two councils.

Negotiations between Bristol City and South Gloucestershire councils had reached deadlock over the route of the tram.

Bristol council wanted the line to go to Parkway station in the north east of the city, while South Gloucestershire councillors wanted it to end at Cribbs Causeway, in the north.

But the two authorities have now agreed to work together to develop the plans for both a Cribbs Causeway and a Parkway terminus - to see which is more viable.

I am encouraged that we have managed to achieve cross-party support within Bristol City Council.

Councillor Helen Holland

At a meeting on Tuesday, Bristol City councillors unanimously voted to approve the new proposals.

The deadlock between the two councils had threatened �160m of government funding towards the project.

In May, Bristol councillors had voted to "go it alone" and proceed with plans to run the tram from the city centre to Parkway, via the University of the West of England in Frenchay.

Deputy Leader of Bristol City Council, Councillor Helen Holland, said: "I am encouraged that we have managed to achieve cross-party support within Bristol City Council.

"I hope to hear that when South Gloucestershire debates this issue tomorrow they will be able to do the same.

Single scheme

"This will reduce the risk of any further delay to this essential project."

However, if both schemes were approved by government, only one route - probably Cribbs Causeway - would be taken forward.

Councillor Holland said if both routes proved practicable the two councils would have to agree a single scheme between them.

"Bristol will now prioritise the work needed to get it to Parkway and South Gloucestershire will take their work forward on the Cribbs Causeway option," she said.