The 25km tram system would link the suburbs to Limerick's city centre at a cost of around £250M and is most likely to be funded by public-private finance.
EML director Michael Landers said: "This is about providing infrastructure to cater for the future growth and development of our city.
"Think about the positive image trams would portray in attracting investors and tourists, not to mention providing Limerick with a real competitive edge over other gateway cities."
Local public transport is currently limited to 12 bus routes servicing Limerick city and its suburbs.
Six of these stop at 6pm while the remaining buses stop at 11pm.
The decision to go ahead in Limerick comes three years after Dublin belately opened its own Luas tram service.
This project suffered from years of delay and cost overruns., and along with other high profile failures in the UK putting tram schemes on the back-burner.