The new trams could be running by 2011
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A £570m Metro tram extension is set to get the green light after council leaders agreed the next phase of the development.
Public transport body Centro plans to build two new lines in Birmingham and one in the Black Country as the next step towards a complete network.
About £400m of government cash has already been set aside for the scheme that could see trams running by 2011.
The plans are in addition to new lines through Birmingham and to Dudley.
Rob Donald, from Centro, said the plan would help address the issue of traffic congestion.
"The benefits for people living and working in the West Midlands will be substantial," he said.
Consultants predict about 25 million passengers would use the modern tram system, while an opinion poll suggested as many as a quarter of rush hour motorists would be tempted away from their cars.
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