The Douglas tram stables could be put up for sale and the horses moved to a new home at Derby Castle.
Douglas council will this week consider proposals to sell the stables on Tramway Terrace to fund much-needed improvements to the main tram depot at the Strathallan site.
The council says it supports government proposals to create a new, single tram line with passing places as part of its multi million pound Promenade overhaul.
Council leader David Christian says the scheme would protect the horse tram service into the future.
And he says with Strathallan in urgent need of attention, combining the depot and stables could be the answer:
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