The go-ahead follows a decision by the Department of Transport to agree to a £1.7m grant towards the cost.

The rest of the funding comes from Mersey Travel,the North West Regional Development Agency, Network Rail and the owner of the docks, Peel Holdings.

Network Rail is to contribute £2.3m with Peel's contribution thought to be just £750,000.

The new link will prevent freight trains having to reverse across passenger lines at Edge Hill to enter or leave the docks, a procedure that takes 40 minutes.

The previous rail link was closed in the 1970s, when traffic through the Port of Liverpool was in  both in sharp decline.

The DfT’s grant is part of £132m for rail improvements into ports announced by the Government earlier this week.