Trams could soon be making a comeback on the streets of Auckland.

The New Zealand Herald reports Auckland Transport is investigating replacing some bus routes with an electric tram service as a solution to the city's increasing traffic woes.

It's hoped the light rail will cover a large triangle of the Auckland network that won't be serviced by the proposed City Rail Link.

This includes Symonds Street, Mt Eden Road, Dominion Road and Sandringham Road - all part of a 72 kilometre tram network before the tracks were uplifted in 1956.

Chairman Lester Levy is looking at private investments as a source of potential funding.

He's hoping a decision will be made on the project in March.