Three new routes were planned for Greater Manchester

People who live in Oldham and Rochdale took part in the second of a series of rallies about the decision.

Transport secretary, Alistair Darling, decided in July to axe the extension, saying it was too expensive, even though �200m has already been spent.

The rally came after MPs met Mr Darling to try and get him to change his mind.

'Stay positive'

Roger Ellis, chief executive of Rochdale Council, said keeping pressure on the government to change its mind would continue to be a priority.

"We've got to keep trying," he told BBC GMR. "We got to be as positive as possible.

"We must keep stressing the positive opportunities for Rochdale, Oldham, Tameside and the rest of Greater Manchester that the extended Metrolink network would bring.

"Unless we stay positive our chances of success will go down."

Plans to convert the railway line to accommodate the Metrolink were first developed in 1998 and some buildings have already been demolished or relocated to make way for it.

However, the expansion scheme - which also included routes in Ashton and Tameside as well as a link to Manchester Airport - was cancelled at the start of phase three.

A further protest rally is scheduled to take place in Manchester city centre on 16 September.