Network Rail and the city council want �350m from the West Midlands Local Transport Plan, the Government and the rail industry to fund the scheme.

Under the plans, the station's platforms and concourse would be redeveloped in 2011.

Business leaders and passenger groups in the region have welcomed the proposed changes.

'Very confident'

Councillor Mike Whitby, leader of Birmingham City Council, said a new partner would be helping to fund the scheme.

He said: "Funding, quite rightly, is an issue.

"I believe very imminently, there will be a further announcement from a different partner, nevertheless a significant partner, announcing a major contribution to the ultimate cost of the programme."

A spokesman from the Birmingham Chamber of Commerce added: "I think this time it will happen. This time it's serious.

"There have been attempts in the past but the quality of the team behind this makes me very confident.

"It's not there yet - still a long time in the waiting but we are off."

Cara Hastings, from Network Rail, says the regeneration will be great for the station and the surrounding areas.