The rumble of trams on Blackpool's streets could be a thing of the past within just two years, say resort council officials.

According to the council the town's Victorian-era tram network is in "urgent" need of upgrade with 55 per cent of the 120-year-old track network in a "very poor state" and in need of being replaced or being electrically rewired by 2006/7.

This will cost Blackpool Borough Council, which is responsible for maintaining the existing tramway with Blackpool Transport Services, and Lancashire County Council around 25 per cent of the £88m needed for the work.

But unless the Department for Transport (DFT) back a bid submitted by the council to cover the remaining 75 per cent, the town could see many large sections of the 11 mile-long Fleetwood to Starr Gate system shut down completely within the next two years.

It is hoped that this latest proposal will be more successful than the authority's original bid for a £170m light rail system which was rejected by Transport Minister Alistair Darling MP in July 2004.

A council spokeswoman said: "Blackpool's tram system is in urgent need for investment, which is why our bid is key to the future. Unless we receive additional funding within the next two years, sections of the tram system will unfortunately have to close."

"If, however, we are successful in our bid to renew and significantly upgrade the tramway, Blackpool Council and Lancashire County Council will have to pay for 25 per cent of the £88M required."

This could mean that not only would Britain lose its oldest tram network, but the north west would be stripped of its only tramway to have survived the 20th century after plans to extend Manchester's Metrolink service were refused full DFT funding earlier this year.

Chris Davies Liberal Democrat North West Euro-MP has already called on the government to support Blackpool's latest proposal before a lack of funding brings the town's tramway to a standstill.

He has also written to Mr Darling warning him that he faces being "known for all time as the man who killed the Blackpool tram".

Lytham-born Mr Davies said: "Refusal to support the proposal would leave the Government's commitment to public transport improvement in disarray."