Developers are promising to invest in an environmentally friendly tram link between Stratford-upon-Avon and Evesham if they get Government permission to build a 6,000-home eco-town in south Warwickshire.

St Modwen and the Bird Group confirmed that part of a £100 million infrastructure package would be used to run hybrid electric-bio fuel vehicles on a former rail track between Stratford and the new town at Middle Quinton.

The service could be extended to Evesham, depending on local council support for the idea.

The announcement is part of an attempt to reject claims by campaigners that the new town will be little more than a commuter village, putting more cars on narrow rural roads.

The developers also propose to pay a cash sum toward completion of the Stratford western by-pass.