Plans to build three new tram lines on the Manchester Metrolink network are set to go ahead after the region's 10 local authorities agreed an investment of £500m.
Trams will now run to Oldham and Rochdale town centres by spring 2014, and to Manchester Airport by 2016.
In addition to funding from the councils, the Airport will also provide a contribution.
Councillor Keith Whitmore, vice chair of Greater Manchester Integrated Transport Authority (GMITA), added: "This historic announcement is excellent news and is a vital step towards delivering a 21st Century public transport network for Greater Manchester.
"Both GMITA and AGMA have worked hard to get to this stage and I now look forward to work starting on the ground."