The State Government is being urged to approve a modern tram system designed to ease traffic congestion in metropolitan Perth.

Supporters of 'light rail' believe a proposal will go before Cabinet soon to call for tenders from engineering companies for the initial design phase.

It is understood the network would include a route that links the University of Western Australia in Nedlands to Curtin University in Bentley, running through the central business district.

A spokeswoman for the Transport Minister Troy Buswell would not confirm the reports.

Professor of Sustainability at Curtin University Peter Newmann says he believes that it is at the point where tenders will be called for design work to deliver the light rail lines.

"We've had very strong signals from the Premier - "a decade of light rail" are his words - and with that political support, the public servants I know have been working away on the detail and we're getting very close now to having some real decisions from Cabinet," he said.

"I am optimistic and I believe that there is no alternative," he said.

"The growth in traffic has been substantial and the public transport system is not coping with the demand, it's very clearly needed."

Professor Newman says with record high fuel prices, the State Government needs to act.

"Pity the cities that are not growing and don't have mining boom largesse to help fund it," he said.

"But this is the historic opportunity we've got - we've got the need, we've got the money, let's do it."