The Luas Red line is to be extended by 1.5km to a new terminus at the Point in Dublin.

The new line will be operational in 2009.

The Minister for Transport, Martin Cullen, today approved the application by the Railway Procurement Agency for the extension from the current terminus at Connolly Station.

The proposed extension will have four stops: George's Dock, Mayor Square, Spencer Dock and the Point.

The Department of Transport said the scheduled completion date for the project is 2009.

The Department of Transport added that the extension is expected to add over 2m new Luas trips per annum and remove over 1m vehicle trips from the roads.

Last August, Mr Cullen gave the go-ahead for the start of work extending the Luas Green line from Sandyford to Cherrywood.