Jacob's Engineering Ireland will be tasked with looking at route options and develop initial designs for the proposed Luas Line from Ballincollig to Mahon Point in Cork.
When completed a large number of significant destinations will be served, including Cork University Hospital, University College Cork, the city centre and the docklands.
National Transport Authority chief executive Anne Graham says it is essential there is progress on the delivery of key elements of the city's transport strategy sooner rather than later.
Transport Infrastructure Ireland (TII) and the National Transport Authority (NTA) said they were pleased by the news:
"This proposed Luas scheme will provide a high-capacity, high-frequency public transport link from the eastern to the western suburbs of Cork and will serve a large number of significant destinations.
"These include Ballincollig, the proposed Cork Science and Innovation Park (CSIP), Cork Institute of Technology (CIT), Cork University Hospital (CUH), University College Cork (UCC), Cork City Centre, Kent Station/Cork North Docklands, Cork South Docklands and Mahon.
Long-term objective
The project is part of the Cork Metropolitan Area Transport Strategy, published by the NTA earlier this year and has been a long-term objective in the Cork Metropolitan Area.
TII chief executive Officer Michael Nolan said that he was very pleased to be able to announce the news today:
"Light Rail has proven itself in many cities, including Dublin, and TII is very enthusiastic about working with the National Transport Authority and all the regional stakeholders in taking this project forward in Cork."
Meanwhile, NTA chief executive Anne Graham said:
“When the NTA met with the elected members of Cork City Council recently, it was clear to us that there was overwhelming support for the measures contained in the Transport Strategy."