A joint funding scheme between Transport for London (TfL) and the London Borough of Croydon which will enable TfL to lease up to ten new trams was applauded by the Mayor Boris Johnson and Croydon Leader Mike Fisher today.

A Croydon Council Finance Committee meeting last night ratified its ?3m contribution to the scheme last night. TfL has issued a Europe-wide invitation to interested parties to bid for the tram supply contract and confirmation of a successful bidder will depend on their proposal.

Boris Johnson, the Mayor of London, said: "We want to boost tram services in South London by putting up to another 10 trams on the busiest part of the network. This is a great example of team work between two authorities to provide investment that will improve services for outer Londoners.

"The new trams will be a real win for local people living or working in Croydon, Wimbledon, Beckenham and New Addington."

In January, TfL invited companies across Europe to submit proposals to supply the new trams which, subject to funding being confirmed, would increase the frequency of services on the busiest London Tramlink route which runs between central Croydon and Elmers End.

Croydon Council leader Mike Fisher said: "Croydon's trams are an icon of the borough's vision and ambition. Getting more trams on the system as soon as possible is the answer to pressing capacity issues as the popularity of Tramlink continues to grow."

Since TfL took over the network in 2008, it has been improving the service. However, the number of journeys has increased by 45 per cent since the network opened in 2000 and TfL now wants to meet that increase in demand.