The Department of Infrastructure says it has compelling reasons to support moving the horse tram tracks away from Douglas Promenade.
Minister Phil Gawne says it's still considering original proposals that aim to address the economic, cultural and social environment.
Set to cost £3.5 million of the overall £21 million budget - it has been met with strong opposition from the public.
MHK David Quirk has been a fierce critic of the plans and still believes the solution is a single track running adjacent to the pavement:
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