Passenger trains linking Oxford and Bicester with Milton Keynes and Bedford could be running by 2007 if a £65m bid for Government for funding is successful.

The money would pay for design work, the modernisation of track and signalling between Bicester and Bletchley, rebuilding of Bicester Town station in London Road, and the reopening of Winslow station, west of Bletchley.

There would be an hourly service in both directions on the route, which would absorb the commuter service between Oxford, Islip and Bicester operated by Thames Trains, and Silverlink Trains' Bletchley to Bedford service. Bicester Town station would have two platforms instead of one and while most of the route would be single track, there would be several passing loops for trains.

The bid for funding is being organised by a consortium of local authorities, including Oxfordshire County Council, which have been battling to get Government backing for an East-West link.

Talks will be held in March between representatives of the councils involved and Government officials.

In the long term, the scheme's backers hope to rebuild the Bedford to Cambridge line to create a cross-country link between East Anglia and the West of England, via Oxford and Didcot.

With massive housing growth proposed by the Government for the region, the consortium believes a start could be made by running passenger trains from Bedford to Oxford.

Richard Ward, Buckinghamshire's senior transport policy officer, said the bid was being made now in readiness for the Government's spending review covering 2006/08.

Mr Ward said: "Realistically, if we get the green light trains could be running in 2007 at the earliest. It would take 18 months to do the work on the track, signalling and stations."

Chris Wright, secretary of the Oxon and Bucks Rail Action Committee, which supports the scheme, said: "This is a positive move to bring back a first class service."

Adrian Shooter, chairman of Chiltern Railways -- which has joined forces with intercity operator GNER to form London & Western -- will talk about their bid for the Greater Western passenger franchise. The franchise will cover all services from Paddington to Oxfordshire, South Wales and the West Country from 2006.

Mr Shooter will be speaking at the annual meeting of lobby group Railfuture at Bicester Methodist Church hall in Victoria Road on February 28, at 2pm.