If MET - made up of operator Keolis, designer Parsons Brinkerhoff and contractor Balfour Beattie - do not make a bid then the project is dead.
At least £170m of Government funding, and possibly millions more, would be lost to the region. Once again, Liverpool Council finds itself seemingly with the fate of Merseytram in its hands.
The Serco-backed M Tram consortium pulled out last Friday, again citing concerns over the council's position. Transport Minister Charlotte Atkins also criticised the council's "dithering" on the trams on a visit to Merseyside this week, saying it could jeopardise the vital funding needed for Line Two.
Last night a council spokesman insisted: "We are surprised by this as both Merseytravel and MET are both very well aware of the council's views.
"They have met with the chief executive (Sir David Henshaw) and the executive director for regeneration (Charlie Parker).
"We do not believe there are any impediments now standing in the way of them progressing the scheme."
The Daily Post understands the council's position on Merseytram will be considered at a select committee today and a report delivered to the executive board on Friday. That could leave the way open for the council to formally adopt the new position requested.
Three options now remain open to MET; to submit the current bid which is on budget; to submit a new bid which includes extra "risk factor" cost which would probably put the scheme over its £228m budget; or to withdraw completely, ending all hopes of trams returning to Merseyside.
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