Expanding Manchester's Metrolink network would generate more than 3,200 new jobs over the next two decades, it is being claimed.

According to a study commissioned by Manchester Enterprises, this would have a knock-on effect on the economy, boosting it by almost £160 million by 2026.

The report says that improvements to the light rail system will attract more talent and encourage people to stay in the city-region to work in the IT, creative and business services sectors.

Mike Emmerich, chief executive of Manchester Enterprises, said: "As Greater Manchester assesses the Transport Innovation Fund package, this study provides a further source of information to enable people to judge its merits."

The study also claims that expanding the Metrolink would increase the value of housing stock in Greater Manchester by up to £515 million.

A public consultation on the proposal to invest in the city-region's public transport system in return for a congestion charge is currently taking place. A referendum is expected to go ahead later this year.