The tram will be extended to the east and west of the city
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Proposed extensions to the Supertram network in South Yorkshire are to be discussed by county transport leaders.
The South Yorkshire Passenger Transport Authority is to consider approving the submission of an application for government funding.
The proposals include an extension from Meadowhall to Rotherham Parkgate, and a line serving Royal Hallamshire Hospital and Sheffield University.
The meeting to discuss the scheme will be held next week.
Around 12m passengers used the Sheffield service in 2003.
Economic benefits
Leader of Sheffield City Council councillor Jan Wilson said the extensions would be a major boost to the region.
"Extending the supertram will bring economic and regeneration benefits to South Yorkshire, but will obviously be particularly beneficial to the people of Sheffield and Rotherham," she said.
But people gave a mixed response to the plans after more than 200,000 leaflets were sent out asking for their views earlier this year.
Less than 2% were returned and the transport authority said the mixed reaction would be taken into account in the final decision.
The scheme, which also includes a proposed route into Rotherham town centre, is expected to cost around £400m.
Under current government funding guidelines, 25% of the money must be secured locally.
An original plan to extend the network to Waverley has been dropped and bus-based schemes will be introduced instead.
The Department of Transport is expected to announce its decision on the extensions in spring.