A £570m extension to Nottingham's tram network has been given final approval, the city council has confirmed.
Work on the construction of two new lines, which will extend the tram system to Chilwell and Clifton, is expected to start in January.
A contract to build the lines has been given to Tramlink Nottingham, which will also take over the operation of the existing line to Hucknall.
Services on the new routes are expected to be running by late 2014.
The government gave the go-ahead for the project in March and funding has now been approved to extend the Nottingham Express Transit (NET) network.
It is being funded by the city council, the government, tram fare revenue and a private finance initiative (PFI).
Revenue from the Workplace Parking Levy, which will see firms with more than 10 parking spaces pay for a licence, will also go towards the scheme.
Councillor Jane Urquhart, portfolio holder for planning and transportation at the city council, said: "This is fantastic news for Nottingham.
"In these constrained financial and economic times it means a significant boost to the local economy, more jobs and better public transport for thousands of people."
Transport Minister Norman Baker said: "I am delighted that we are able to finally approve funding so that construction of Phase Two of the tram system can begin.
"Line One of the Nottingham tram has proved to be a great success in encouraging people on to public transport.
"These extensions provide the opportunity to build on that success, and give people in the south of Nottingham quicker, more convenient access to the city centre as well as providing an alternative means of accessing the city centre for people commuting by car."
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