WINNIPEG -- Winnipeg city council has approved a measure that would transfer $321 million of federal transit cash for the North Winnipeg sewage plant project.

The province requested that the city request the transfer.

The deal is contingent on Ottawa agreeing to it, plus the province topping up its own share.

The city also wants guarantees on future transit funding.

The money would go towards the first two phases of the $1.8 billion project.