Galway could see a light rail system developed like the Luas in Dublin.
A feasibility study commissioned by the National Transport Authority (NTA) says there is a case for developing a 15 kilometre light rail corridor.
It has been dubbed 'Gluas' by locals and could cost €1.34 billion or more, but the study believes it could reduce car journeys in Galway city by 10 per cent.
The NTA said their updated strategy will provide a long-term strategic planning framework for the delivery of transport, and the integrated development of transport infrastructure and services in the Galway Metropolitan Area (GMA).
In a statement they said: "The final report of the study has now been published for information and will form part of the analysis used to inform the development of the GMATS, alongside recommendations for active travel, bus services, rail, roads and demand management measures.
"Full environmental assessment will be undertaken as part of the overall GMATS process, which will also include a full public consultation."
They said route options will need to be explored in more detail during any subsequent process of options assessment and development.