THE battle to run the East Coast Mainline could end in the courts after both rival bidders threatened legal action if they run out the losers.

A decision on who has won the franchise is expected within the next few weeks, with existing operator GNER strongly tipped to come out on top, with its promise of 2,000 new jobs and a £2bn upgrade.

But with the lengthy bidding process already delayed several times, both GNER and rivals Virgin said they would consider taking it to a judicial review, raising the prospect of the first rail franchise to be decided by the courts.

A GNER spokesman said: "If we felt there was any problem with the process of awarding the franchise we would certainly have a close look at it and see if there is any reason why we might challenge the decision.

"We're very confident that we're going to win a new franchise, so it is hypothetical.

"We could look at some sort of judicial review, but it is not automatic."

Virgin's proposals include creating a new line to accommodate faster trains, capable of speeds of up to 200mph.

A Virgin spokesman said legal action was a possibility but the decision would be made after the franchise announcement from the Strategic Rail Authority (SRA).

He said: "It is a consideration but clearly we would need to look at what the SRA are actually saying.

"This has gone on such a long time and there is also the cost of this sort of exercise throughout the whole protracted scenario.

"We would want to sit down and have a look at it and consider it, one would not necessarily rule it out."

The decision on the 20-year franchise has been delayed after both GNER and Virgin were told to revise their bids and by the effects of the Hatfield and Selby rail crashes.

An SRA spokesman said none of the previous franchise decisions had ended in legal action.

He said: "This has been a very keenly contested franchise, there are only two parties involved and it has been very competitive.

"If one loses it is understandable that they would possibly look at what action they could take."

Updated : 17:42, Thursday 5th July