East West Rail: Bedford to Cambridge route via Milton Keynes to be announced in May
and live on Freeview channel 276
Councils along the line will also share £15 million to develop economic growth plans around new stations.
A consultation about a proposed route closed in June 2021.
The current preferred option travels from Bedford, through the Sandy and St Neots area, into Cambourne and then enters Cambridge from the south through a new station at the city's biomedical campus.
Last year the Chancellor approved plans for a new £184 Cambridge South Station which would eventually sit on the East West Rail line.
Chancellor Jeremy Hunt said the controversial rail line will “support further growth in life sciences and other high-productivity sectors” in the region by connecting businesses and talent.
The document states: "East West Rail - the rail line joining Oxford and Cambridge - will support further growth in life sciences and other high-productivity sectors across the region, connecting businesses and talent.
"In May, the government will confirm the route for the new Bedford-Cambridge section, and will provide capacity funding to support local authorities to develop their plans for strategic economic growth around new stations."
Campaigners, including the The Protect Poets group in Bedford, have previously opposed to the project with concerns over whether their houses will be demolished by the new route.
East West Rail says "71% of local residents support a new transport link between Oxford and Cambridge".