An Bord Pleanála has given planning permission which allows work to begin on an extension of Dublin's Luas Red Line to Citywest and Saggart, Co Dublin. The Red Line runs from Connolly Station to Tallaght.

Welcoming the news, Minister for Transport Noel Dempsey said the new line was expected to add five million passenger journeys a year to the Luas network.

Stops on the new line are planned at Fettercairn, Cheeverstown, Citywest Campus, Fortunestown and Saggart.

The Railway Procurement Agency said construction of the new line was expected to start later this year and be completed by the end of 2010 with services operating on the line in early 2011.

A group of developers is to contribute to the line. Citywest Luas, which is made up of Davy Hickey Properties, Harcourt Developments and HSS, will provide €39m for the development of the line, land and certain infrastructure.