The Department for Transport (DfT) is understood to have told those companies that have expressed an interested in the franchise that the initial shortlist will not be drawn up for another ten days.

The bidder shortlist was due to be announced yesterday under the timetable outlined to prospective bidders.

Industry insiders have expressed concerns over the relatively tight bidding schedule, which foresees GNER giving up management of the franchise by the end of the year. A delay in the initial prequalification round could, it is feared, push back later rounds.

National Express, First-Group, Arriva and a joint venture between Virgin Trains and Stagecoach are understood to be among the transport groups that have indicated an interest in tendering a full bid for the £1 billion franchise, which will run for up to seven years.

The DfT is planning to issue a call for formal bids to shortlisted parties next month. Prospective operators would then have until June to submit proposals.

The successful bidder is due to be announced in July or August, according to the target timetable, with a handover from GNER expected in late autumn .

The consultation period over the franchise plans finishes on February 15. Feedback may then be incorporated into the official documents sent out to shortlisted bidders in March.

The franchising process hit controversy late last year when the DfT said those companies interested in taking control of the London to Leeds, York, Newcastle and Edinburgh line had one month to register their interest.

Rail executives complained that the one-month deadline, which included the Christmas holiday period, left just 18 working days to complete prequalification documents and legal work. That effectively excluded bidders that had not prequalified for the franchise in 2004, when it was last awarded, executives said.

GNER, which has held the East Coast franchise since privatisation, won the ten-year franchise in early 2005, on a £1.3 billion bid. However it struggled to meet repayments as energy costs increased and as passenger numbers disappointed.

GNER had sought to renegotiate its franchise, which had been due to run until March 2012, but the Government declined.