Edinburgh residents will be consulted on a plan to extend the Capital's tram system from Granton, through the city centre and towards the Royal Infirmary later this year, according to a report.
Plans for the new line will be put to the public after the extension to Newhaven opens in the spring.
The council's transport chief said the next phase, known as 1b, will open in 2035 "at the latest".
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While the authority says laying more tram tracks is integral to cutting congestion and meeting ambitious climate targets, news of further disruption, roadworks and risk to the city's finances will not be universally welcomed, as one councillor warned "you cannot spend what you don't have".
Meanwhile councillors have called on officials to look into the options for a "relatively short western extension" to Newbridge and Ratho Station - areas currently under-served by public transport.
Transport convener Scott Arthur said during a City Chambers meeting this week a north-south route, estimated to cost £1.2 billion, is "at the absolute heart of everything we're doing in the transport domain right now".
He added its importance is "reflected" in the Scottish Government's plans.
A report published by Holyrood last year which informs transport investment over the next 20 years included developing mass transit in Edinburgh and the south-east, which has given the council hope the Scottish Government will fund the Granton to Little France tram line.
A separate report which went before councillors on Thursday said a strategic business case (SBC) was "making good progress" with work ongoing to "finalise alignment options for the southern section of the line".
It said: "A three month public consultation is planned for later this year. This will present the primary findings from the work completed so far and the outcome of the consultation will be used to complete the SBC."
Cllr Arthur said the north-south extension "will open in 2035 at the very latest".
Danny Aston, SNP, said there was "a strong case for an expansion westwards beyond the current start of the line at the airport serving the rapidly-growing communities of Newbridge and Ratho Station".
He noted both are "areas currently very under-served by existing transport links".
Councillors agreed to bring forward a report on the issues and options that would come with the "relatively short extension".
The Conservative's Marie Clair-Munro said that even if another tram extension is desired by residents "we simply don't have money".
She said: "Edinburgh residents have made their views very clear to I think nearly every councillor sitting here today - they want good travel, yes they want active travel, but they want their city's roads and pavements repaired.
"You cannot spend what you don't have."
The Green group's Alex Staniforth hit back: "£1.2 billion is a lot of money and honestly maybe we're not sure where we'll get it.
"And these projects can be quite disruptive - trams and active travel - but do you know what would cost us more, would be more disruptive? Climate change and climate chaos."
He said the planet it on course for a 1.5 degree temperature increase and parts of the city "will be underwater" unless bold action is taken to reduce emissions.
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