Extending the Nottingham tram system through Kimberly would cost £168 million, a study has said.
And further extending the line to Langley Mill, Heanor and Ripley was “technically feasible”, but would require further consideration.
It comes after trams began running on the £570m extensions to Chilwell and Clifton.
The £55,000 feasibility study by Mott MacDonald for Broxtowe Borough Council looked at four potential routes to the retail park, which attracts thousands of visitors each year to its Ikea store.
It explores a route under the M1 from Phoenix Park, where an existing line currently finishes, to the Giltbrook Retail Park, via Kimberley, with a possible further extension into Derbyshire.
Campaigners said it will bring investment into Kimberley but some businesses said the proposed stops are too far out of town.
Under the proposals, the line would extend west just under four miles from Phoenix Park, where it would also pass under the potential HS2 line, which may run alongside the motorway.
The study suggests it would be at least six years until the trams would start running to Kimberley if the project is given the green light.
In January, councillors at Broxtowe Borough Council voted to pay £20,000 towards the feasibility study
The proposal to commission Mott MacDonald for the study was first refused at a council meeting in December.
The remaining £30,000 towards the £50,000 study has come from British Land, which own Giltbrook Retail Park.
Andy Cooper, chairman of the Kimberley Eastwood and Nuthall Tram Extension Group (KENTAG) has said the move would bring massive regeneration to the area.
He said: “A tram line will bring jobs, growth and ease the chronic traffic congestion, particularly in Nuthall.”
But Darren Warner, chairman of Kimberley Residents Association, has stated that the tram extension would not benefit the town.
He told the Advertiser: “People are not going to get off the tram and walk up the hill to go shopping in Kimberley so local businesses will not have any financial benefits.
“The study has basically been put in place to try to persuade us it is possible and will benefit Kimberley, but I can’t see it.”