The Borders Transport Corridors study draft report recommends that the Borders Railway extension option remains open.
The report said that taking the Borders Railway on to Hawick or Carlisle could help meet several national travel objectives.
In total 21 options have been recommended for further appraisal work, including making improvements to the A7 and A68. The report also recommends considering taking the railway line towards the East Coast Main Line, although expense is seen as an issue with that plan.
The recommendations will now go out for a six-week consultation and then be considered as part of a Scotland-wide Strategic Transport Projects Review.