Kenilworth railway station has been given the green light after receiving a guarantee of £5 million from the government to allow the project to go ahead.
Warwickshire County Council has developed plans for the £11 million station alongside operator London Midland.
Network Rail will now look at how it can work these proposals into its plans for CP5.
The Department for Transport (DfT) has said the £5 million investment “represents the biggest single allocation since the launch of the government’s New Stations Fund”.
Transport Secretary Patrick McLoughlin said: “Our support for Kenilworth station illustrates our commitment to working with community and national partners to meet local transport needs that not only deliver real benefits to passengers but also improves the network.”