A machete was reportedly brandished during a confrontation between youths at Heaton Park Metrolink station on Wednesday.
A large number of police officers were sent to the area following the incident, which happened after 3pm.
No injuries have been reported and no arrests have been made.
Speaking about the incident in a Bee Network committee yesterday, Thursday, Prestwich Cllr Alan Quinn said "we need to throw the book" at the people causing trouble on public transport.
He said: “I saw a police presence near Heaton Park and believe a gang of idiots decided to board the tram and confront kids from a local school.
“I have been told on good authority that a machete was brandished.
“We are not going to get people on public transport while this goes on.”
He added: “Maybe the smart thing to do would be to say nothing, but I believe we must bring this out in the open.
“We need to throw the book at these idiots because someday someone will get seriously injured.
“I believe the response from the police was fantastic, but we want to be safe and it can't be when there are idiots like that.”
A Greater Manchester Police spokesperson said: “On Wednesday, January 24, police were called to reports of a disturbance at Heaton Park Metrolink station involving a large number of young people.
“Officers attended and quickly dispersed the crowd. No arrests were made.”
The force said it could not confirm that it was a machete or knife-related incident, and added that no injuries were reported.
Parents spoke about the incident via social media, with several adding that their children are now too afraid to use the tram service.
One person said: “It is so scary to think that our children are growing up in a society that has no regard for anyone and there are just a minority of decent people out there”.
Another added: “My son said someone was threatening the kids there and he won't go anywhere near the tram now."
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