The business case for extending the tram network in Edinburgh has been approved by councillors.

A tendering process will now get under way to secure a potential contractor for the project, which would see the line taken to Newhaven, in the north of the capital.

But no formal decision will be made on the proposed extension until autumn 2018.

A judge-led inquiry is ongoing into the controversial first stage of the network, which runs from Edinburgh Airport to York Place.

If given the go ahead, capital costs for the extension are estimated to be £165.2m.

Construction is expected to take three years, including 18 months on Leith Walk, followed by approximately four months of testing and commissioning on the new line.

Edinburgh's transport convener Councillor Lesley Macinnes said: "For the people of Leith, having a direct tram link to the city centre and other key employment and travel hubs would be hugely beneficial.

"That said, we are acutely aware of how challenging the construction period would be, which is why we're developing a compensation scheme to help those who would be most affected."

National Records of Scotland projections published in 2016 suggest the city should be planning for an additional 47,000 people by 2024 and an extra 102,000 by 2039.

Edinburgh council leader Adam McVey said: "Given the rate of growth forecast for Edinburgh over the coming years, we simply cannot stand still."

He added the local authority will consider lessons learned from Lord Hardie's inquiry.