Buckshaw Village railway station is back on track after it was announced the project is to receive an extra £3.3m in funding under the Community Investment Fund.
The future of the scheme between Chorley and Leyland was in doubt because of cash shortfall but it can now go ahead.
Coun Peter Goldsworthy, leader of Chorley Council, congratulated everyone involved in bringing the scheme to fruition.
He said: “I know officers and councillors from Chorley Council have worked hard for years to keep the pressure on our many partners and make sure this railway station happened.
“The bid for funding from the Community Infrastructure Fund (CIF) was prepared by this authority and singled out by government as a particularly impressive piece of work.
“If it wasn’t for this unwavering dedication of the council to this project I don’t think it would have ever got off the ground.”
Chorley MP Lindsay Hoyle, who has been lobbying for the cash, said: “The railway station will be a vital lifeline for residents and businesses on Buckshaw Village.
“Most recently I spoke to John Healey, minister responsible for the CIF programme, to press the case for Buckshaw.
“In addition with a park-and-ride facility, the new station will be a real asset to the wider community as demand for rail services continues to grow.”
The politician said he wanted to see work begin urgently.