The New South Wales Government will buy six new light rail vehicles as it moves to upgrade the Sydney system.
The government says $19 million is being spent on the vehicles, with the first to be on the tracks in early 2015.
Six have already been ordered through Spanish manufacturer Construcciones y Auxiliar de Ferrocarriles (CAF) and they are expected to be operating by mid-next year.
Minister for Transport Gladys Berejiklian says the New South Wales Government will be able to retire the existing light rail fleet that has been in operation since the current service started.
"When CAF was initially engaged in August last year to supply six new and four leased light rail vehicles, their contract included a provision to supply more new vehicles in the future if required," she said.
"These new vehicles will provide a smooth, quiet, comfortable and air-conditioned customer journey on this important mode of public transport in Sydney."
The vehicles will be used on the current Inner West Light Rail line and the 5.6km extension of the line from Lilyfield to Dulwich Hill, which will begin operating early next year.
"Light rail will continue to play a significant role in Sydney's transport future, with construction of the Inner West light rail extension nearing completion and work for the new line through Sydney's CBD and south east likely to begin next year," Ms Berejiklian said.
The news comes four days after two light rail derailments stopped service across Sydney.
The vehicles came off the tracks on Monday night as they were approaching different stops.
The operator, Transdev, is not expecting the system to be operating again until next week.