Plans are being finalised to build an extension of the Midland Metro through Birmingham city centre.
Over the coming months, Balfour Beatty will be working with the region's transport authority, Centro, to finalise the design and construction proposals for the project.
The extension is designed to provide a fast link between Birmingham's two major rail stations and allow more than 3.5 million passengers direct access to the city's shopping district.
Bill Gifford, regional managing director for Balfour Beatty Civil Engineering, said the company is "delighted" to be working on the scheme, which Centro's chief executive Geoff Inskip called "a prestigious project in the heart of Birmingham".
Work on the extension is scheduled to begin next year and be completed by 2015.
Birmingham New Street station is currently undergoing a revamp by Network Rail, which includes the installation of a footbridge to provide access to all the platforms and a new concourse.