Adelaide's tramline will be extended to the city's East End in the first stage of an expanded network.

The State Government has announced a $50 million, one-kilometre extension along North Terrace that will go ahead in stage one of its long-awaited AdeLINK tram network.

Three stops will service universities along the route as well as the Old Royal Adelaide Hospital (RAH) site, which is marked for future development after the new RAH opens in the city's west.

An extension to East Terrace is the first stage in a planned network for Adelaide and surrounding suburbs. ( ABC News: Malcolm Sutton )

It is the first stage in a planned city loop around the CBD and marks the beginning of EastLINK, which will eventually connect to Kent Town in the eastern suburbs.

Adelaide had an extensive tram network covering all quarters of the city and inner suburbs until it was ripped in the 1950s to make way for buses and cars.

An audit undertaken last year for a national infrastructure report found the performance on urban roads and urban public transport in Adelaide was a "key challenge" for South Australia.

It flagged a tram network as a medium-term solution in the next five to 10 years.

Premier Jay Weatherill said the extension would provide an economic boost to North Terrace and Adelaide's east end.

"This is a beautiful boulevard, one of the world's great boulevards, but we want to make it better and especially on the southern side of the street, we want to make sure that each of those buildings is open for business," he said.

"It leaves [open] all of our options about where the next extensions of the routes out of the city are.

"We want to get onto this as quickly as we can and get it finished as quickly as we can."

A Government spokesperson said an Industry Participation Advocate would ensure "as many local jobs and contractors as possible were utilised during construction".

He said Adelaide City Council was contributing another $5 million to help "fast-track the project, by providing upgrades to the public realm and contributing to the planned East End tram stop".

The $50-million expenditure is part of the 2016-17 state budget to be announced in full on Thursday.

The Government hopes work will begin towards the end of this year.

Registrations of interest for tenders are being called for this week.

Property Council executive director Daniel Gannon said extending the tramline through more of the city was good news.

"The extension of Adelaide's tramline to the existing RAH [Royal Adelaide Hospital] site is good news for the property sector and the north-eastern quarter of the CBD," he said.

A plan to service four quarters of the city

The State Government's full AdeLINK plan includes:

EastLINK — extending east through Kent Town to The Parade

EastLINK — extending east through Kent Town to The Parade WestLINK — following Henley Beach Road to Henley Square, with a branch line to Adelaide Airport

WestLINK — following Henley Beach Road to Henley Square, with a branch line to Adelaide Airport ProspectLINK — following O'Connell Street to Prospect Road

ProspectLINK — following O'Connell Street to Prospect Road UnleyLINK — following Unley Road and Belair Road to Mitcham

UnleyLINK — following Unley Road and Belair Road to Mitcham CityLINK — following a continuous loop around the city with transfers at other tram lines and the Adelaide Railway Station

CityLINK — following a continuous loop around the city with transfers at other tram lines and the Adelaide Railway Station PortLINK — using the existing Outer Harbor line with additional services to Port Adelaide, West Lakes and Semaphore.

Federal Labor in April announced it would make the multi-billion-dollar AdeLINK tram network a priority if it won the federal election.