Deputy First Minister Luan Wyn Jones announced the £22 million joint funding agreement yesterday - between the Welsh Assembly Government and Network Rail - that would rebuild and modernise Newport station.
"Newport train station is the passenger gateway to both the city and south Wales," the Minister said.
"The impression it gives to both visitors and those who use it everyday is important - it must represent a modern, vibrant city."
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He added: "The multi-million pound programme will see the complete refurbishment of Newport station and add to the regeneration and revival of the city as it gets ready to host one of the world's premier sporting events, the Ryder Cup."
The scheme is set to include new terminal buildings and a public footbridge, a new passenger footbridge, a new taxi area and short stay car park as well as a new 250-space passenger car park.
When the programme is complete all platforms at Newport will also be compliant with the Disability Discrimination Act.
Dave Ward, Route Director for Network Rail, said: "Network Rail's initiative to redevelop the Newport Station is an aspiration shared by many and we are pleased to receive all-round support, especially from the Welsh Assembly Government.
"It is an exciting scheme that will benefit passengers and regenerate Newport to reflect it as a vibrant, dynamic and modern city.
"We are delighted that the scheme, which builds on the success of Network Rail's recent new platform four project at the station, is now poised to go full steam ahead."
(JM)
