Havering Council is considering building a tram route as part of plans to boost the local economy.
The Council says it will carry out a study to see if trams could connect the north of the borough to its south.
Council leader Ray Morgon said other options include light rail or a “rapid bus” system.
Existing public transport in the area mainly provides east-to-west journeys into central London or towards Essex.
The council suggests that the trams could run from Harold Wood through Romford and Upminster, towards a proposed railway station at Beam Park in Rainham.
It said the route could also potentially connect with the Docklands Light Railway and the proposed Essex-Kent tram link, known as the KenEx Tram.
Councillor Morgon said: “Whatever the outcome, a rapid north/south connection [would] bring prosperity and growth to the borough and improve the lives of Havering’s residents.
“We will announce the next steps once the study is finished.”
It comes after London Mayor Sadiq Khan announced plans to improve public transport in outer London, including an orbital network of suburban bus routes called the Superloop.
However, no Superloop buses are expected to pass through Havering – an issue raised by Conservative London Assembly Member Emma Best at City Hall meetings earlier this summer.
In June she told the deputy mayor for transport, Seb Dance, that people in the borough were being “completely screwed”. “You’ve completely misunderstood the need for public transport in outer London and the reason that people have to rely on their cars.”
A spokesperson for Mr Khan said that he is “dedicated to improving public transport in outer London” and is committed to working with Havering and other boroughs to improve their transport network.
“Recently this has included increasing frequency and capacity of bus services in Havering. TfL is working with the borough on its travel strategy,” the spokesperson said.