Space will be left for the horse tram tracks on the promenade walkway - despite a decision to scrap the iconic service.
The Department of Infrastructure says it will continue with its original plans to revamp Douglas Promenade - with the exception of laying the tramlines.
Those plans are still subject to planning approval and support from Tynwald with an update expected in February.
Douglas Council's decision to bin the transport link hasn't found favour with everyone - Manx National Heritage director Edmund Southworth says it doesn't have to be the end:
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