First Great Western will bid for the franchise

Companies are invited to "express interest" in operating the new Greater Western franchise, which will run for 10 years from April 2006.

This combines the operations of First Great Western, First Great Western Link and Wessex Trains.

First Great Western and London & Western are expected to put in bids.

London & Western was created in November last year by intercity operator GNER and Laing Rail, a parent company of regional operator Chiltern Railways, specifically to bid for the franchise

'Reduce franchises'

Potential bidders must express interest by 2 February next year, with pre-qualified bidders expected to be announced in spring before the tendering process begins.

The franchise will operate long-distance, regional and local services in the Thames Valley, Cotswolds and the West of England, plus some cross-border services into south Wales.

Secretary of State for Transport Alistair Darling said: "In October I announced proposals for reducing the number of franchises to bring them together with Network Rail's regional route structure."