The search for funding for a planned £6m railway station in Derbyshire is due to begin.
Part of the finance for the station in Ilkeston could come from £1m set aside by the government to help provide transport to new housing schemes.
Derbyshire County Council's cabinet has now agreed to start negotiations for the remaining money.
It is hoped the station will be open by late 2012, with hourly trains to Nottingham, Chesterfield and Sheffield.
A study prepared for the council predicted that 120,000 passenger journeys would be made from the station on the existing Erewash Valley line.
A spokeswoman for Derbyshire County Council said: "Extensive negotiations will be necessary in the future, not least regarding finances.
"But we've agreed to pursue it further with a view to providing people in Ilkeston with alternative public transport links to Nottingham and potentially beyond."