NETWORK Rail is in talks to hire a former wagonworks site in York, which it may turn into a maintenance operation.

The company confirmed it is about to sign a 12-month deal to hire the site from Trinity Rail.

Network Rail is also carrying out a feasibility study on the expanded use of the Thrall depot in York, which has led to claims that it intends to establish its maintenance division there, creating up to 250 jobs. If the deal goes ahead, it would be the second time rail jobs have moved into the site since the closure of the York carriageworks in the 1990s, restoring it as a major centre for the rail industry.

A spokeswoman for Network Rail said: "Network Rail has a commercial agreement with Trinity Rail Group for fleet stores management and distribution, which is currently operated out of the former Thrall site.

"During Trinity Rail Group's occupation of the site under this agreement, Network Rail will be making a full assessment of the viability of expanded use of the depot."