The unsightly Velez-Malaga and Torre del Mar tram line has been lying neglected for four years, since the town council axed the popular 6km service.
But now it looks set to re-open after the junta agreed to stump up 40% of the costs to repair damage wreaked on the line while it was closed.
The town hall will front the other 60% and believes the trams could be put back in action during 2017, once an agreement between the two authorities has been signed .
The trams, which visited 12 stops, are currently on loan in Australia but will be returned when the line is renovated.
It was closed to reduce town hall costs.
Talking about the plan, Felipe López, a town councillor, said: “The political option we share is to work on improving public transport and that we share this deficit between the City Council and the Ministry, and that is what we are going to do.”
The tram system was constructed in 2003 and served people wanting to travel between the two communities for six years from 2006.