Over-60s could travel on the long-awaited Edinburgh trams free of charge, under plans being explored by the city council.
Efforts will be made to ensure that holders of the National Entitlement Card will be able to use the service when it starts running in summer 2014.
Keith Brown, the Scottish Government transport minister, said: "Securing the future of the national concessionary bus scheme was a key commitment for the Scottish Government and I am pleased that, following our discussions, Edinburgh City Council has agreed that it will look at ways of funding any local concessionary scheme for the trams."
Councillor Lesley Hinds, transport convener in Edinburgh, said: "The tram needs to be wholly integrated into the national transport network and, for me, this means that over-60s and people with disabilities should have free use of the service.
"We'll now start looking at the practicalities of funding this whilst operating within the national card scheme and we'll work closely with Transport Scotland to achieve this."