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.
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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.
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.
It is thought that as well as giving builders a much needed boost, 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.
(BMcC/GK)
