The mayor of London is reportedly keen on a new Cross River Tram (CRT) that would link parts of the capital.
Crossing the Thames at Waterloo, the CRT would link Camden Town with King’s Cross in the north of the city, and Brixton and Peckham in the south.
Members of the Cross River Partnership met with mayor Boris Johnson to discuss the issue earlier this week, London-se1.co.uk reports.
"We are pleased to hear he’ll work with boroughs to ensure all the options for this project are worked through before any final decision is made," Cllr Paul Noblet, Southwark Council’s executive member for regeneration told the website.
Caroline Pidgeon, a Lib Dem London Assembly member added: "It was a really productive meeting and the mayor made lots of positive noises about the Cross River Tram proposals.
"The mayor needs to know there’d be a huge cost to London if the plan were to be dropped both in terms of vital regeneration and the lost opportunity of greatly enhancing the capital’s transport infrastructure."
Mr Johnson has the final say on the fate of the £1.3 billion scheme and although he is believed to feel positive about it, some Conservative London Assembly members have called for it to be scrapped.