A planned £42m bendy bus scheme for Bristol could be replaced by a cheaper tram scheme.
The bus plan was originally announced in 2009 and would have linked Long Ashton park-and-ride with Temple Meads.
Bristol City Council has met with tram consultants Sustraco who claim switching to trams could save the authority money.
The council will now meet with a government minister to discuss whether either scheme is viable.
Councillor Gary Hopkins, the council's transport spokesman, said the authority was aware that funding was a big issue.
"We are aware the government are reviewing the costings on these schemes and the different viabilities," he said.
"As some of the money will come from government then we have to be sensitive to their views.
"If government decides we'd much rather support a different type of technology then what we're saying to them is we're happy with what we've bid for but if you feel there's a different way forward we'll listen."
Bristol had planned a city-wide £200m tram scheme nine years ago but it was scrapped in 2004 because of escalating costs.