A new £130 million London to Oxford rail link is to be built, with trains running by 2015.
Chiltern Railways said it had been given the green light by the Government to start work on the line.
As part of the project, Chiltern will build a new station at Bicester as well as a new parkway station at Water Eaton north of Oxford.
Chiltern's business development director, Graham Cross, said: "We are pleased to have been granted the power to proceed with this significant railway investment, which will benefit thousands of commuters and businesses in Oxfordshire and Buckinghamshire.
"The Oxford to London link is the latest in a long line of innovative Chiltern-led projects to upgrade the rail infrastructure, fuelled by our understanding of rail's potential to make a significant contribution to economic growth and prosperity."
Chiltern made it clear that the new link will only involve 0.5 miles (0.8km) of new track.
Also, the work at Bicester will involve the redevelopment of the existing Bicester Town station.