CONNEX could soon be in the running to operate Melbourne's trams as well as its trains, after its French parent company confirmed it wanted to take control of the company behind Yarra Trams.

The State Government will announce within weeks its preferred contractors to run Melbourne's trains and trams for the next eight years.

Connex, owned by French firm Veolia, is bidding for the train contract.

Yarra Trams, half-owned by France's Transdev, is bidding for the contract to run the city's trams.

Veolia yesterday confirmed, in a statement posted on its French website, that it was looking to acquire or take a major shareholding in Transdev.