The Nuneaton, Coventry, Kenilworth, Leamington (NUCKLE) railway scheme which has provision for a railway station at Coventry City's Ricoh Arena has initially been given an amber light by government officials.
The news was announced by Transport Secretary Phillip Hammond and is now subject to a final, much more detailed bid being approved in September.
This means that despite efforts by City Councillors, MP''s etc, the station will not be ready for the 2012 Olympics.
"We've made the cut off which is welcome," said former Coventry City Chairman and local Labour MP Geoffrey Robinson to the CT's Les Reid. "It's a great pity its too late for the Olympics but the scheme is about much more than the Ricoh.
"This is a last chance now. The project leaders must get their act together and develop a robust final bid for funding."