UK Chancellor George Osborne is reportedly set to propose a new HS3 high-speed rail link to be built between Leeds and Manchester.

The project comes after the $85bn HS2 project and the existing HS1 rail link between London and the Channel Tunnel.

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"The cities of the north are individually strong, but collectively are not strong enough."

The HS2 rail link will be developed in two phases, based on existing rail routes with new tunnels and infrastructure.

The first phase of the project will connect the line to West Midlands, while the second phase will connect to Leeds and Manchester, as well as Scotland.

The two phases are expected to be completed by 2026 and 2033 respectively.

Osborne was quoted by the BBC as saying: "The cities of the north are individually strong, but collectively are not strong enough. So the powerhouse of London dominates more and more and that’s not healthy for our economy. It’s not good for our country."

The project will complement the UK Government’s investment in the Northern Rail Hub and the Strategic Road Network.