It could deliver more than 1,500 new homes and create over 8,000 jobs.
A new tram route will connect Birmingham city centre with East Birmingham. It is expected to unlock billions of pounds in investment and create thousands of jobs.
The East Birmingham Metro Extension is being funded through a £2.4 billion Government boost for the West Midlands transport network.
The project will also support Birmingham City FC owner Tom Wagner’s ambitious Sports Quarter development.
The Metro extension is key to unlocking the plans, with the wider project expected to attract around £3 billion in investment. It could deliver more than 1,500 new homes and create over 8,000 jobs.
At the centre of the Sports Quarter will be a proposed 60,000-seat stadium for Birmingham City FC.
The stadium is planned for the Birmingham Wheels site in Bordesley, forming part of a wider sports campus.
The campus will include training facilities, a new academy and community pitches.
The new tram route will provide a direct connection between the Sports Quarter and Birmingham city centre.
It will also improve access to jobs, education, healthcare and leisure opportunities for local communities.
The route will connect with the Eastside extension, which is currently under construction.
It will serve key locations including Millennium Point and Birmingham City University.
It will also connect to Curzon Street HS2 station and Digbeth.
Digbeth is home to the new BBC Tea Factory and Digbeth Loc. Studios. The studios were established by Peaky Blinders creator Steven Knight.
West Midlands Mayor Richard Parker said the funding would allow the new Metro line to be delivered, saying it would also unlock major private investment across the region.
Mayor Parker said the project would transform East Birmingham and North Solihull into a major growth corridor.
The longer-term ambition is to extend the tram towards North Solihull, Birmingham Airport and the NEC.
The route could also reach HS2 Interchange and the wider Arden Cross regeneration area.
The wider plans could unlock around £10 billion in private investment.
They could also create 55,000 jobs and deliver around 7,700 homes.
The tram network is expected to reduce congestion across key routes into Birmingham city centre.
It would provide faster and more reliable connections between communities and important destinations.
New homes and businesses could also be developed around future tram stops.
The plans include more sustainable neighbourhoods, improved public spaces and better walking and cycling routes.
The investment is expected to support communities across East Birmingham and North Solihull.
It could also create new opportunities for local people through improved transport connections.
The Government funding marks an important step towards transforming transport across the region.
For Birmingham City FC, it also moves the proposed Sports Quarter closer to becoming a reality.
