If successful, the link would have a major impact on job opportunities and the local housing market.

The bid to re-open the Todmorden Curve, which would provide passengers with a faster 45-minute direct service to the city, is featured in the Lancashire and Cumbria Route Utilisation Strategy (RUS), a 10-year strategy for improving rail travel across the two counties.

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The strategy recommends that funding options for the £4m. route, via Todmorden, should now be looked at and a business case developed.

The news has been welcomed by Burnley MP Mrs Kitty Ussher: "We've been working really hard on this over the last few years.

"We are not there yet, but it's really encouraging progress.

"I am very heartened, it gives me hope that this is in the realms of possibility. I said in 2004 that it was a personal priority along with the university campus."

She also urged the people of Burnley to use the existing service between Burnley Central station and Manchester Victoria.

Mrs Ussher is due to meet with the chief executive of Lancashire County Council and the railways minister to discuss the project.

Following reports submitted to rail bosses on behalf of Burnley Borough Council and Lancashire County Council by Colin Buchanan Consultants, the strategy, published by National Rail states: "We have identified that there could be a case for a direct service."

There is also good news for Burnley passengers using the Leeds to Blackpool service, with line speed improvements set to be carried out between Burnley and Hebden Bridge.

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