The ambitious ideas include the possible creation of a waterbus link between Portsmouth and Southampton and a tram system.

Councillors have drawn up a wish-list of proposals, including widening the M27 and creating a rapid bus link from Gosport to Portsmouth.

Transport for South Hampshire – a collaboration of Portsmouth City Council, Southampton City Council and Hampshire County Council – say the multi-billion-pound plans are the only way the region will cope with 80,000 new homes over the next 18 years.

The transport shopping list will be finalised at a meeting on Monday and councillors want government to stump up the cash.

Transport for South Hampshire chairman Councillor Mel Kendal said: 'It's a very exciting report. We've already captured the interest of government.

'The £2.6bn list is an estimate of what it might cost to make the changes we'll need over the next 20 years.

'It's a reasonably costed, well thought out scheme and if the government wants to us to have all these extra houses they need to put their money where their mouth is.

'At some stage I'd like to investigate whether we could use a fast ferry like we have from Portsmouth to the Isle of Wight, serving Portsmouth, Fareham, Gosport and Southampton.

'It could work at peak hours and there's no reason we shouldn't use the waterway as a freeway.'

Councillors want to bring in 'smart cards' that can be used on buses, trains and ferries in a bid to create a seamless transport system.

The scheme also includes a public transport interchange at Tipner, including a major park-and-ride scheme providing links to the city centre and Port Solent.

Another park-and-ride in Farlington would intercept journeys from Havant and the A3 corridor.

Portsmouth City Council's executive member for traffic and transportation Alex Bentley says South Hampshire spent crucial time and money planning the Light Rapid Transit scheme ,but was left high and dry when government pulled the plug on funding.

He added: 'These new proposals are quite dramatic.

'People are thinking outside the box now and I certainly welcome that.'

mary.griffin@thenews.co.uk