Line One will travel between Liverpool and Kirkby

The council's executive board said it was "minded" to allow Merseytravel to start work on the Merseytram Line One, from the city centre to Kirkby.

The green light is subject to funding being given by the Department for Transport.

Councillor Peter Milea said Merseytram was a "crucial part of the regeneration of Liverpool" and that he wanted to see it up and running by 2008.

'Quality design'

"We are minded to grant the certificate - subject to some negotiations -even though the Government has not yet confirmed its funding as we want to be as supportive of Merseytram as possible," he said.

Liverpool City Council wants to be sure the funding for the project is secure before building work begins, to avoid the financial burden falling on the taxpayers.

"We also want to make sure that we have a high quality design in keeping with a Capital of Culture and World Heritage City," Mr Milea said.

Work on the project is expected to begin in July.

Merseytram's Line Two is planned to go between Lime Street and Edge Hill.

In April, Merseytravel appointed the consortium M-Pact to carry out the work.