The proposed extension of Croydon's tram link to Crystal Palace could be in jeopardy following approval of the Crossrail scheme.

Crossrail is a £16bn project to build a new rail link through central London, connecting Maidenhead and Heathrow in the west to Essex and Kent in the east.

However, since Crossrail was given the green light there are fears the long-awaited extension of Croydon's tram line could be sacrificed because it could impinge on the route of the new rail link.

The proposed extension to Crystal Palace is a three kilometre route linking the existing network from the Harrington Road tram stop with Anerley and Crystal Palace.

Transport bosses said the line would cut travel times between Croydon and Crystal Palace to 18 minutes.

Norbury Councillor Pat Ryan said he is disappointed by the rumours and said the loss of the tram extension could have a dramatic effect on the area.

He added: "There is a deep suspicion that the extension to the Crystal Palace line could be sacrificed.

"Don't get me wrong because I think the Crossrail link is a great idea and I am really pleased and supportive of the plans, but I am just praying that the rumours that are flying around about the trams are not true."

The Crossrail route will travel underground through the city centre between Paddington and east London and Transport for London (TfL) hopes it will reduce journey times and overcrowding on London's transport network.

A bill is currently in the process of going through Parliament in order to obtain the authority to build Crossrail. Once passed, it is expected work could start on the rail link by 2010 with the first trains running on the line by 2017.

But Coun Ryan said Crystal Palace residents would be adversely affected if the tram line was sacrificed.

He added: "It really would have a devastating effect on the community - residents and the transport community as well. It would be absolutely superb if we could get the tram line up here and I will be doing everything I can to ensure it happens."

General manager of Tramlink, Roger Harding, said: "It is all in TfL's hands and we have no further inside information on this matter."

A spokesman for TfL said: "Local people and businesses showed strong support for the proposed extension of the Croydon Tramlink to Crystal Palace in the results of the consultation on route options published in June 2007.

"The extension would deliver a high quality, regular tram service for local people helping to ease congestion and reduce pollution by providing an alternative to the car.

"Transport for London is looking at which route is best overall, taking into account the cost of construction, the availability of funding, passenger numbers, environmental impact and the views of residents and stakeholders from the consultation."