Network Rail says it has put aside up to �10m to fund building a new station in Bromsgrove. It is also considering whether to extend the current station's platform, at a cost of �2m, but said it had not yet decided whether it would do either.
Only trains with three carriages can currently stop at Bromsgrove Station because of the length of the platform.
Commuters have called for it to be extended, saying that rush-hour trains to the station are crammed.
'Big step'
Mike Ponsonby, chair of Bromsgrove Rail User Group, welcomed the decision to allocate funds.
He said: "It is precisely what we wanted to hear in short.
"It is a big step and they've undertaken a feasibility study over the past months to investigate the cost and benefits of this station relocation."
A spokesman for Network Rail said a feasibility study, funded by Worcestershire County Council, was currently being carried out and it would make a decision when it was completed.