A feasibility study is to be carried out on running half-hourly train services between Derry and Belfast.
Infrastructure minister Nichola Mallon said it would also examine the possibility of new halts with park and ride facilities at Strathfoyle, Eglinton/City of Derry Airport and Ballykelly.
She said she was determined to address regional imbalances and connect communities.
“Improving rail services to the north west is a key part of this and I have already taken a number of important steps to achieve this. Earlier this year I committed to a new feasibility study to get phase three of the Derry to Coleraine rail line back on track and I have ring-fenced funding for that work to be done at pace,” she said.
The SDLP minister said rail connectivity was also key to delivering greener transport and she has been working with Irish government minister Eamon Ryan on improving services across the island.
