Tramlink Nottingham, which includes Vinci as its main construction contractor, was selected ahead of the Arrow Connect consortium.
The council hopes to award the 23-year concession contract in late summer, once details are finalised.
The contract with the consortium currently operating Line One, Arrow Light Rail, will be terminated to ensure the extended network is fully integrated with the existing Line One.
The government confirmed on 24 March that funding is to be made available to enable the construction of two more tram lines, known as NET Phase Two, after cost savings were identified to make the project more affordable.
Tramlink Nottingham comprises: Vinci, Alstom, Keolis (the UK arm of the world's largest private tram operating company), Wellglade (which owns Trent Barton, the UK's largest independent bus operator), Meridiam Infrastructure Finance and Infravia (a private investment fund).
Tramlink Nottingham chairman Roger Harrison said: "We are delighted to have been selected as preferred bidder. Building on Arrow's successful legacy, we are excited to be taking forward the next chapter in Nottingham's tram story. Our focus now will be on working with Nottingham City Council to ensure NET Phase Two can be introduced at the earliest opportunity.
"We have put together an extremely strong partnership and we are confident of being able to create a network which will not only be efficient and effective in terms of meeting the city's transport needs but which will also help to take Nottingham's international status to a new level."
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