The extension will run from a junction with the existing Metro system, close to the current terminus at St George’s, through to the railway station.
Midland Metro Alliance, which is working on behalf of the West Midlands Combined Authority and Transport for West Midlands to construct the extension, hopes it will encourage more people to use public transport and benefit the local economy.
Responding to frustration aired by city leaders over the long-running project, bosses say the track has now been installed outside the revamped Station Plaza and the final works are taking place.
A Midland Metro Alliance spokesman said: "The Wolverhampton City Centre Metro extension is currently in the final stages of construction following the start of works outside the revamped Station Plaza last year.
"Track has now been installed in this area and further activity, such as delivering system integration works including upgrading and commissioning a substation and final building activities such as fixing overhead lines to key buildings, are currently taking place.
"Much of this activity is taking place outside of regular working hours. We are working closely with all partners to accelerate activity in order for testing and commissioning and driver familiarisation to commence before the route can open.
"We hope to be able to advise passengers of an opening date soon.”
It comes after there were calls from City of Wolverhampton Council's leader, Ian Brookfield, saying the Metro extension must be complete by the time the Commonwealth Games begin in July.
The first phase of constructing this route was completed in 2017. Last year, a total of 40 metres of double track was installed on Railway Drive, and September also saw the installation of the extension’s switch and crossing, an intricate section of rail that allows trams to move from one track to another.
The Wolverhampton city centre extension includes three new Metro stops.
Two of these – one on either side of the road – will be in Pipers Row to allow easy interchange to and from the city’s bus station and one will be at Wolverhampton Railway Station, where the Metro will terminate.