The existing light railway would need to merge with heavy rail

Strathclyde Partnership for Transport (SPT) said the route could carry 1.6 million passengers each year.

On Friday, councillors will be asked to approve a �250,000 appraisal of the scheme which would link Parkhead with the underground at St Enoch's station.

SPT said it was more "cost-effective" than a �2.3bn plan publicised in March.

Then, a second underground loop serving the east end was proposed.

That project has been put on hold as it was deemed "hugely expensive" by SPT.

Games venue

The "cost-effective" plan links the current Argyle line with Parkhead, via an old redundant railway tunnel.

The report said "technical solutions" would need to be investigated.

An SPT spokeswoman said the extension would see a light rail system - the subway - operating on an existing heavy rail system and would require an interchange.

SPT would need to apply to the Scottish Government and Transport Scotland for funds for the project.

Alistair Watson, chair of SPT, said: "We've got a once in a lifetime opportunity to provide world-class infrastructure in the east end of Glasgow.

"If we want to compete on a global scale, this is the type of infrastructure we have to be providing for the long term benefit of the city and beyond."

The appraisal will focus on linking Glasgow city centre and the east end.

It is hoped the route would be up and running by 2014 when Glasgow hosts the Commonwealth Games.

Celtic Park will be a games venue while the athletes' village and velodrome will be built nearby.