Edinburgh council officials said the route for the £545m ($866m) tram project in the city will be shorter than planned due to cost uncertainties.
In a report, the council recommends that a route from Edinburgh Airport to Newhaven is not possible and that the tramline will terminate at St Andrew Square in the first phase, at a cost of £700m ($1.1bn).
The report also states that negotiations between the contractor, Bilfinger Berger, and Edinburgh Trams are underway and could be settled in December.
Furthermore, £380m ($604m) of the £500m ($794.8m) fund allotted by the Scottish Government for the project has already been spent, with only 24% of the infrastructure work completed.
The report concludes that the proposed extension of the tramline to Edinburgh's waterfront is not possible until 2031.
