The new franchise is due to start in autumn 2004

The franchise will incorporate non-express rural and urban services across Yorkshire, Greater Manchester, Tyne and Wear, Teesside, Merseyside and Cumbria.

Arriva Trains Northern, Serco Rail/Netherlands Railways, First Group and Eurorailco - a consortium of Transdev and RATP Development - have all submitted formal bids.

The Strategic Rail Authority (SRA) is expected to announce a preferred bidder next spring with the franchise due to start in autumn 2004.

'Robust competition'

Until then, Arriva Trains Northern and First North Western will continue to operate the services.

Richard Bowker, chairman of the SRA, said: "We have a strong field competing for this new franchise and the competition will be robust.

"The franchise is being let under the SRA's new franchising policy which gives greater clarity and certainty to bidders about what we expect on behalf of passengers."

In July, the franchise to run the main Trans-Pennine Express route, linking major northern cities, was won by a consortium headed by First Group.

First Group and its partner Keolis beat off competition from Connex to win the franchise more than three years after the bidding started.

The firm has announced an investment package of �260m in the network over the next eight years.