The line will be extended to a temporary platform at Corwen
Plans to extend Llangollen Railway to the town of Corwen are about to become a reality.
The Welsh Assembly Government has confirmed a £500,000 grant towards the construction of the first phase of the steam and diesel railway expansion.
It is hoped passengers will be arriving in Corwen by late summer 2012. The last service ran more than 45 years ago.
"There's a lot to do in 18 months", said George Jones, publicity officer for Llangollen Railway.
Steam and diesel trains currently run for 7.5 miles along the banks of the River Dee from Llangollen to Carrog.
The line will run to a temporary platform in Corwen, an extension of just over two miles to the existing line.
The eventual intention is to build a full station at Corwen.
"This is going to link two main towns with each other," Mr Jones said.
"Hopefully it will attract a different segment of the tourist market.
"At the moment people join the service from Llangollen in the east, but with a station terminus in Corwen you open up the service to a different market," Mr Jones said.
The existing line has not run between Corwen and Carrog since 1965
A passenger service between the two towns last ran in 1965 and the rails were taken up in 1968.
The chair of Llangollen Railway Trust, Jim Ritchie, said: "We are delighted with the news that a grant has been awarded and the project team are working hard to complete the last few remaining items required to allow work to start within the next few weeks.
"The restoration of this historic link will provide passengers with an important transport link from the west into the Dee valley and the important World Heritage Site at Pontcysyllte," Mr Ritchie said.