It is hoped the new stop will help address long standing congestion and air quality issues in the Lower Don Valley and along the A6178.
The surrounding area is home to hundreds of businesses and thousands of jobs across manufacturing, logistics, retail and hospitality.
Rotherham Council leader Chris Read said the tram stop would improve access to two of South Yorkshire’s busiest employment corridors and support wider regeneration of the Don Valley corridor.
“Rotherham residents and people across the region will benefit from better, greener transport, improving access to jobs in the Templeborough area and beyond,” he said.
“It fits into the bigger plan for the Don Valley Corridor between Rotherham and Sheffield; more jobs, more investment, and a transport system that supports it all.
“The proposed Templeborough business zone, within a short walk of this stop, will be an early beneficiary.
“Magna is also two short stops from Rotherham’s proposed Gateway station, which will connect businesses and residents in the Templeborough area to mainline rail services in the next few years. It’s a welcome boost.”