The Government funding go-ahead was given to the Manchester Metrolink extension in its response to the advice on regional funding allocations.
Work on one phase of the expansion of the Manchester Metrolink - taking trams to Oldham and Rochdale, Chorlton and Droylsden in Tameside at a cost of £548M - could start in just two years' time after transport secretary Douglas Alexander's decision, welcomed by Greater Manchester's passenger transport authority.
The South East Regional Assembly was also pleased that its advice - including the £320M tunnelling of the A3 through a Surrey beauty spot at Hindhead - had been accepted in full.
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