The Australian state of Victoria will invest A$650m to extend the South Morang rail line.
The project involves laying 12km of track, building 18,000 concrete sleepers and installing 12km of overhead wiring.
Major construction works are scheduled to begin this year.
Early service relocation works on the corridor are already underway, according to thegovmonitor.com.
The move is expected to improve Melbourne’s public transport network and increase access to its growth corridors.
The South Morang rail extension project is part of the A$38bn Victorian Transport Plan.