The contract has been awarded to Parkeon to provide and maintain the vending machines.
It has a capital cost of £1,185,757 with an annual maintenance charge of £186,247 for five years.
Edinburgh Council said Parkeon performed strongly during the procurement process as they currently provide ticketing services for Lothian Buses.
This will be the final significant contract to be let for the tram project and is part of the overall £742m budget.
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Councillors will make their decision when a paper on the contract is presented to the full council meeting on Thursday 13 December.
The Council says the tram project remains in line with the revised budget £776m approved by Council in September 2011.
It says work is either ahead of schedule or in line with the revised timescale reported in December 2011.
Passenger services are expected to be up and running by summer 2014, with full route tram testing from Edinburgh Airport to York Place to be underway by late Spring 2014.
Transport Convener Councillor Lesley Hinds said: "This contract is significant, not only because it will provide an integrated system for the city's public transport network, but also because it's the last significant contract to be let for the tram project.
"With testing now underway on the western side of the route and all contracts in place, I'm happy that things are progressing well and, along with the project team, I'm looking forward to a productive and successful 2013."
(IT)
