An Outline Business Case set out four possible options for extending the tram line in Edinburgh.
It included an option to run the tram line 4.7 kilometres to the district of Newhaven – the longest extension under consideration.
Elected members at the City Of Edinburgh Council last week approved in principle that any tram extension should continue to Newhaven.
The outline business case said this option would yield "a net economic benefit to the city and a range of wider benefits in relation to employment, population growth, social inclusion and economic regeneration".
The council said it would now collect additional information to support any decision to begin the first stage of the project.
If it is agreed at the next council meeting in December to proceed with stage one of the project, a nine-month period of project development would begin, it added. This would include the start of the procurement process for external support and site investigation, it said.
Sandy Howat, deputy council leader, said: "We are in agreement that extending the tram line could have a positive impact on the city, and look forward to receiving further information later this year, before deciding on whether to proceed with the project.
"We want to provide best value for the city, so it is essential that we balance progress with the interests of Edinburgh’s residents."
Council leader Andrew Burns added: "It is now our intention to ensure complete clarity before taking the next step, taking into account the needs of the city’s taxpayers. I therefore look forward to receiving a report providing further detail on the Outline Business Case before progressing the project to the next stage."