The tram system in Blackpool will be extended in a scheme that will cost £18.2 million.

New developments will connect the tramway from Blackpool North train station to the promenade. The Department for Transport (DfT) will provide £16.4 million in funding for the project, with Blackpool Council contributing the remaining £1.8 million.

DfT's funding is part of a £90 million scheme to improve rail and road networks along the Flyde coast in the next ten years. Blackpool could also expect electric trains in the upcoming 18 months.

Councillor John Jones said extending the tramway "would be a very welcome step forward for residents and tourists alike".

He hopes the extension could offer jobs, upgrade the local infrastructure and support economic growth. Connecting the promenade to the main station will be useful for Blackpool's tourism.

A previous upgrade worth £100 million was finished last year. This included replacing old vehicles with modern, computerised alternatives. A new tram depot was also constructed and old track was replaced.

Work on the extension could start as early as 2015.