Stagecoach, the bus and trains giant, said it had successfully concluded negotiations for contracts to maintain and operate the Manchester Metrolink tram network.
Confirmation of the award will put the Perth-headquartered group in line for around £220m of income over the 10-year life of the contract covering the 37-kilometre network that serves the Lancashire city.
The contract, which will start in July, will include managing projects to improve the trams and infrastructure.
Stagecoach Metrolink will also operate trams on new lines to neighbouring towns like Oldham and Rochdale.
Ian Dobbs, chief executive of Stagecoach's rail division, said the new contract would make the group Britain's biggest tram operator. It also operates the 29km tram network in Sheffield on a 27-year concession running to 2024.
"We will be working hard to improve further the high quality of service provided to the thousands of customers who use the system every day."
The announcement came seven weeks after Stagecoach was named as the preferred bidder to take over the operation and maintenance of the Manchester light rail network.
Nearly 20 million passengers travel on the Metrolink network every year, generating turnover of around £22m.
Stagecoach could also be in line for a big expansion in its rail activities this year. It has been shortlisted to run the East Midlands rail franchise, which runs from November.
The Virgin rail group, in which it has a 49% stake, has been shortlisted for a new Cross Country franchise from November. A Stagecoach-Virgin joint venture is in the running for the InterCity East Coast rail franchise.
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