07/11/2013 07:24 EDT | Updated 09/10/2013 05:12 EDT

Scarborough subway deal in the works, report says

A report published Thursday says the Ontario government is moving toward a deal with the city to extend the Bloor-Danforth subway line into Scarborough.

The move, according to a report in The Globe and Mail, would cancel an existing agreement between the city and province to build light-rail as a replacement for the aging Scarborough RT.

The report says Queen’s Park and the city are in discussions about the deal but it’s not clear how the subway extension would be paid for.

The additional costs of going with light-rail over a subway is estimated by the TTC to be at least $500 million — perhaps closer to a $1 billion, if estimates from the provincial planning agency Metrolinx are to be believed.

Mayor Rob Ford has said he wants a subway for Scarborough. Thursday’s story comes as Ontario’s governing Liberals face five byelections on Aug. 1, including one in the riding of Scarborough-Guildwood.

Ford has asked city manager Joe Pennachetti for a report examining options to pay for a subway into Scarborough.