The New Stations Fund, managed by Network Rail, will help build and open new railway stations that can be delivered quickly to provide long-term benefits to passengers and the economy.

Local authorities, train operating companies and developers are being invited to apply for the funding to contribute to the costs of building new stations.

Bids must be submitted by February 25.

Transport Secretary Patrick McLoughlin said: “The railways play a key role in our lives whether it is delivering benefits to the economy, providing vital transport link for commuters or helping friends and family keep in contact.

“We are determined to improve this vital service and building new stations will provide that boost.

“We recognise that local communities are often best placed to deliver their own transport solutions and I would therefore encourage anyone with a credible and worthwhile business plan to apply for this vital extra funding.”

Proposals must be at an advanced stage of development and be supported by the relevant local authority, train operating companies and Network Rail.

Successful applicants will also be required to provide a percentage of funding themselves.

Applications will be assessed by a cross-industry panel, including representatives from Network Rail and the Department for Transport, with an announcement on successful bids made in the summer.