The rail line between Londonderry and Coleraine is to be completely relaid in a £64m operation.
Regional Development Minister Conor Murphy said work would begin by 2011.
Mr Murphy said he had lifted the restriction on investment on the Derry line north of Ballymena.
"That allows the department, now at last, to prepare a business case and an environmental impact statement to start a substantial upgrade on the line," he said.
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