STM director general Yves Devin says it is up to the Quebec government to announce whether the transit authority will order more Metro cars than expected. (CBC)

A larger, more expensive order for new Montreal subway cars could be announced by the end of the year, the director general of the city's transit authority said Monday.

Yves Devin said it's up to the Quebec government to announce "at an appropriate time" if the order will be larger than the original forecast of $1.2 billion for 342 cars.

He told reporters Monday that negotiators are working hard to hopefully conclude a deal by year-end.

"We are in full final negotiations and we cross our fingers."

Reports said the government is considering enlarging the contract to include perhaps 765 cars for $2 billion.

Devin refused to confirm the numbers or discuss what roadblocks may be delaying awarding the contract that was expected last June.

Ultimately, he said the Montreal transit authority (STM) is going to pay the right price per car from the partnership of Bombardier and French manufacturer Alstom.

Former Quebec premier Lucien Bouchard is assisting the transit authority with the "very complex" negotiations.

"We have taken all the necessary protection to make sure that we have the right cars that we want to have and the right price," Devin said after speaking to the Canadian Club of Montreal.

The province will pay 75 per cent of the total cost of the project, with the municipality picking up 25 per cent of the tab.

Delivery of cars is expected to begin in 2012.

The transit authority contacted and met with six potential bidders, including Bombardier, Alstom, Siemens, Kawasaki and manufacturers from Spain and South Korea. The only bid came from the Bombardier-Alstom joint venture.

Meanwhile, Devin said Montreal commuters will likely face small fare increases, but nowhere near what Toronto is set to impose next January.

Toronto transit commissioners will vote Tuesday on a proposal to raise cash fares by 25 cents to $3. Other changes will see monthly passes increase 15.5 per cent to $126 from $109.

Montreal's cash fare is $2.75 while monthly adult passes are $68.50.