The local authority that sunk plans for a cross-Forth hovercraft three years ago has opened the door to relaunching negotiations.
Edinburgh City Council refused planning permission for a berth on the south side of the Forth despite a highly successful two-week trial involving thousands of passengers in 2007.
As a result, transport giant Stagecoach ditched the scheme.
With the proposal refloated, however, the council confirmed it would be happy to speak to the prospective operators about an alternative suitable spot for a landing terminal in the city.
Last week, Fife Council extended a planning condition requiring the old bus depot on Kirkcaldy Esplanade be demolished in June, giving more time for a new plan to be developed and keeping alive hopes the service will be launched.
Forthfast, which The Courier revealed in December has emerged as a potential operator, said it could have a 17-minute service between Kirkcaldy and Newhaven up-and-running in the next couple of years.
Marine consultant Alistair Macleod, who formed the company with engineer John Lidderdale, said: “Fife Council has always been supportive of the proposal and is as keen to get it running as we are but we have to come to some sort of arrangement with Edinburgh Council.
“We need a site that is capable of accommodating buses to take passengers into the city centre.
“We have asked Edinburgh Council to discuss a site with us but we are still waiting to have dialogue with planners.
“It turned down the previous planning application on the grounds of noise but the new hovercraft we propose to use is 15% quieter.”
An Edinburgh City Council spokesman said: “We are aware that a new group has been formed to promote the possibility of a hovercraft service and that they are discussing an existing consent granted by Fife Council.
“No such planning consent exists from City of Edinburgh Council. We’d be happy to discuss the proposals.”
Fife Council transport spokesman Pat Callaghan reiterated its backing for the venture.
He said: “Anything that improves transport routes between us and Edinburgh must be supported.
“We have never altered our position that this is something we would like to see happen.
“I hope the Scottish Government takes the proposal seriously and gives as much support as possible to any franchise that takes it on.”
The proposal for a terminal at Portobello was turned down by Edinburgh councillors despite a recommendation of approval from planners.
When the service was trialled eight years ago some 32,000 passengers travelled across the water between Kirkcaldy and the capital.