Campaigners have stuck to their cause for years

Transport Minister Nicol Stephen is to make the announcement on Monday to a committee of MSPs considering a private bill on the Waverley Railway.

The executive is expected to fund much of the capital cost of the project, now well above a previous �130m estimate.

The line will run 35 miles (56km) from Edinburgh to south of Galashiels.

The Waverley railway, which closed in 1969, had continued on through the borders to Carlisle.

Campaigners hope to see the line from Tweedbank, near Galashiels, to Edinburgh, reopen by 2008.

More investment

The proposed route includes plans for new stations at Shawfair, Eskbank, Newtongrange, Gorebridge and Galashiels

Supporters hope the line will eventually be reinstated to its full length.

According to the Waverley Railway Project, the benefits of reopening the line include access to jobs in Edinburgh, extra local employment and more investment in housing.

A tight timetable has been worked out for building the railway, but the problem of how it will be paid for has always been the biggest obstacle.

BBC Scotland environment correspondent Louise Batchelor said she understands that the executive will put up the bulk of the money required.

However, contributions will be expected from Scottish Borders Council and private sources.