This progress follows the recent publication of a regional rail capacity study and vocal support from West Midlands MPs and leading figures from the business community in the region.

The outline planning submission seeks agreement in principle from BCC to proceed with the detailed planning phase of the £500m investment programme which will transform Birmingham New Street into a world class station and regenerate a large part of the city centre. It also reveals more about the New Street 'Gateway' scheme, including:

* Capacity to handle 150 per cent more passengers during the peak periods every day. Passenger flow and access to the platforms will be greatly improved by new lifts and escalators and a Concourse that is more than three times bigger

* The creation of a pedestrian "street" similar to the thoroughfare in the International Convention Centre linking the north and south sides of the station

* A new hi-tech atrium roof, which will be constructed from the same material used on the Eden Project. This will allow natural light to flood into the concourse, transforming the environment for passengers

* Plans to maximise the development opportunity on the South Side of the station by bringing in £200m of private sector investment. This will generate up to 3,000 new jobs, creating new commercial space and residential development

* A new public square in front of the station, improving pedestrian links to the Bullring and acting as a further catalyst for regeneration

* The project will be redeveloped in two phases enabling the station to continue to operate throughout construction. This will minimise disruption for passengers and make it possible for Gateway to deliver the first half of the project by early 2011

Mike Whitby, the Leader of the City Council and the Chairman of the Gateway Steering Committee, welcomed the submission of the application, saying: "The size and scale of this project is immense. Those who have any doubts about the ambition of this city only need to look at the plans that we are proposing. They will create a world-class gateway, driving regeneration, creating new jobs and wealth for the people of the region."

Gisela Stuart, MP for Edgbaston who has been working with cross party Birmingham MPs to drive the Gateway project forward added: "It is important we move swiftly. This planning application is an essential next step in this process. The Gateway Partners must not lose sight of the fact that a world class New Street Station is what passengers in Birmingham and the West Midlands need as soon as possible."

Martin Chambers, Network Rail's Programme Director, said: "This submission is a crucial landmark for the project. A successful application will enable us to put further flesh on the bones of our plans. With everyone working together we have a once in a lifetime opportunity to deliver a station that Birmingham can be proud of."

The submission of the outline planning application brings with it further confidence that the planned start of site work in early 2008 will be acheived. Network Rail will be using this time until the start of works to undertake detailed analysis of the construction plans to ensure the continued operation of the station throughout the construction period.

Martin Chambers added: "Network Rail and its partners are absolutely committed to ensuring that this project starts on site as soon as possible, and that disruption for passengers is kept to a minimum."