The Daily Telegraph said Transport Minister Rosie Winterton would give the go-ahead on Monday to the scheme, part of a joint bid submitted by 10 councils in the area for millions of pounds worth of Government support for transport improvements.

The Department of Transport confirmed that a decision on the bid was expected "shortly" but declined to say whether it would be approved.

A Department spokesman said: "Congestion is bad for businesses and people's quality of life. We are making £200 million a year available through the Transport Innovation Fund for councils who want to tackle local congestion by making improvements to public transport as well as managing the demands on their roads.

"Greater Manchester has submitted a bid for this fund, which we will announce a decision on shortly. This decision will be communicated to Parliament first."

If approved, the Manchester scheme would be the first large-scale congestion charging system outside London.