The New South Wales Government has announced plans for the Stage 2 extension of the Parramatta Light Rail, before work on Stage 1 has even begun.

A final business case for Stage 2 is expected to be complete in 2018, the same year in which construction of Stage 1 is due to begin.

Pending planning approval, Stage 1 should be operational in 2023.

The preferred 9km route of Stage 2 will connect with Stage 1 of the project north of the Parramatta River through the suburbs of Ermington, Melrose Park, Wentworth Point and on to Sydney Olympic Park.

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Premier Gladys Berejiklian said the extension is “another step closer to connecting Greater Parramatta to the booming sport, entertainment and employment hub at Sydney Olympic Park.”

Minister for Transport and Infrastructure Andrew Constance added: “We know it will provide a direct, frequent and reliable public transport connection for these areas and connects the new Western Sydney University campus at Sydney Olympic Park with its three campuses serviced by Stage 1.

“Light rail will also realise Sydney Olympic Park’s potential as Sydney’s premier destination for cultural, entertainment, recreation and sporting events, as well as linking businesses and residents in surrounding areas.”

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