Up to ten new trams could be whizzing between Croydon and Elmers End to ease congestion on the busy stretch of line.
Transport for London(TfL) plans to increase tram numbers in Croydon by a third after inviting companies to submit proposals to supply the vehicles.
Howard Smith, chief operating officer for TfL London Rail, said: “We are pleased to be working with the London Borough of Croydon to try and boost capacity on the London Tramlink network.
“Since we took over the network in 2008, we have been improving the service and looking at ways to make it even better.
“With the number of journeys increasing by 45 per cent since it opened in 2000 we want to respond to the demand and ensure that London Tramlink continues to provide people in south London with a comfortable and efficient means of getting around.”
Council leader Mike Fisher said although the cabinet had not decided how much to contribute, he believed there would be support for the scheme.
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