Trackless trams are predicted to take over city streets in the near future, with the technology currently being trialed in China.

The trams runs on “virtual rails”, instead of having to concrete rails into the road to allow the street cars to run, with steel wheels being replaced by rubber tyres.

"A light rail system that sometimes, like in Sydney's case, cost $120 million per kilometre, we think could be done for $5 million per kilometre," Professor Peter Newman said.