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Greater Manchester is one step closer to a congestion charge zone, despite opposition to the scheme at the recent local elections.
The zone is expected to come in from 2013 but charges will only apply during peak congestion times.
Funds raised will go toward the improvement of the city's public transport system. This will be supplemented by a £1.5 billion grant from the Government.
This grant is not confirmed, but Greater Manchester's council has been invited to submit the next stage of their proposal for the money.
Professor Stephen Glaister, director of the RAC Foundation, said: "This package offers a better future for local people and the Manchester economy than the do-nothing alternative."
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