Queensland is pushing ahead with the second stage of the Gold Coast light rail, without a funding commitment from the Federal Government.

Deputy Premier and Transport Minister, Jackie Trad said discussions with representatives of the Turnbull Government had been very positive.

"There is a small risk to the state but there is an even bigger risk if we do not go to the request for tender process now, that we will not be able to build the Gold Coast light rail stage two in time for the Commonwealth Games," she said.

"So we think we have chosen the smaller risk here."

The Queensland Government will ask three companies to tender for the construction of the second stage of the light rail, from the Gold Coast University Hospital to Helensvale.

The firms have been short-listed from an expression of interest process that closed at the end of August.

Ms Trad said they would be invited to submit tenders for extending the line to Helensvale ahead of the 2018 Commonwealth Games.

"We need to give them at least 12 weeks in order to pull together a detailed tender bid," she said.

"We will be assessing them over Christmas and hopefully by then we will have finalised our negotiations with the Commonwealth.

"They have been in the market building very big infrastructure projects in the past, so we are very confident that there is a good mix there that can put up a very, very good array of tenders for the Queensland Government to choose from."

She said she was confident the Federal Government would contribute funds to the project.

"We know that there is going to be a significant transport task not only for tourists but also for people coming from the regions," she said.

"People can travel from Brisbane to the Gold Coast without having to hop on a bus and change to another mode of transport.

"The other issue is that this will leave a piece of legacy infrastructure for Australia's sixth largest city."

Ms Trad is expected to name the firms later today.

Federal Government 'keen to see this happen'

The federal Member for Moncrieff, Steven Ciobo, said it was good news.

As part of the Abbott government, Mr Ciobo said Queensland should lease public assets to fund the work but he said there was now a more pragmatic approach.

"We've got a new federal approach in terms of providing funding for urban public transport," he said.

"The new Prime Minister, Malcolm Turnbull, has made it clear to me, and I have spoken to him numerous times now in relation to this light rail project, that there is potential to look at it.

"We of course want to dot the i's and cross the t's in relation to the business case but the Federal Government is keen to see this happen."

Mr Ciobo said the Government understood Queensland's desire to get the extension built before the Games.

"There's a Cabinet approvals process, there's Infrastructure Australia that will need to review the actual amount involved but suffice to say the Federal Government is looking very good to make a significant contribution, which is in addition to the $6.7 billion that we have already provided the Queensland Government for transport infrastructure," he said.

"The ultimate dollar figure will come down to discussions between the Federal Government and the State Government, suffice to say it will be a very significant contribution from the Federal Government.

"That is what is enabling the State Government to go forward to call for requests for tender to make sure that we can confirm the tight time frame that is involved."