The reopening will connect Cowley and Littlemore with the rail network for the first time since 1963.
The government has pledged £120 million in funding, part of a £500 million investment to link up Oxford and Cambridge.
The line currently operates for freight but will undergo upgrades to prepare it for passenger use, including significant improvements to the single-track section, enhancements to the wider network south of Oxford and modernisation of existing level crossings.
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New stations will be built at Cowley and Littlemore.
Journeys from Cowley to Oxford station would take just nine minutes on the reopened line.
The Full Business Case, completed in July 2025, determined that the branch line could be reopened in 2029, pending commencement of the detailed design in early 2026.
The government said the reopening would help create up to 10,000 jobs.
Marcus Jones, Network Rail’s Western route managing director, said: “The reopening of the Cowley Branch Line to passenger services for the first time in more than 60 years is fantastic news for residents, rail passengers and businesses across Oxford.
“Alongside East-West Rail, which will link Oxford and Cambridge, and our wider plans to transform the city’s railway station, it’s a very exciting time for transport in Oxford and we’re looking forward to delivering these benefits alongside our partners.”
Operator Chiltern Railways supported with a charter service for stakeholders on the branch line.
The Department for Transport will appoint an operator and confirm the route for Cowley services in due course.
