It is claimed only trams can relieve Leeds's traffic congestion

In July, transport minister Derek Twigg asked West Yorkshire public transport organisation Metro whether the money would be better spent on buses.

Metro has reviewed its plans and has again concluded trams are needed.

Even if the scheme is approved, it is unlikely the first trams will be running before 2011.

A Metro spokesman said: "In response to Mr Twigg's request, we have completed a further review into a high quality bus option and provided additional details of the local funding for the tram option.

Legal powers

"Once again the tram proved to be cost-effective and the only solution that will provide the range and level of long term benefits needed by the city and the region along the planned routes."

The new information has been sent to the Department for Transport along with a reminder that an early decision is needed so work can start on buying more than 200 pieces of land needed for the scheme.

Legal powers the council have to buy the land expire in March 2006.

A spokeswoman at the Department for Transport said: "It is important we make the right decision which we will come to in due course."