ARRIVA Trains has made it on to a five company shortlist to bid for the new Northern Rail franchise which begins in the summer of next year.

The franchise includes rural and urban services throughout the whole of the North of England, taking in routes on both sides of the Pennines.

Arriva's current franchise, which includes the key trans -Pennine route linking Newcastle-York-Leeds-Manchester and Liverpool, is being split into two later this year.

The Northern franchise will mop up the remaining Arriva services left behind when a new trans-Pennine express franchise is created.

Strategic Rail Authority Chairman Richard Bowker said: ''The qualification threshold was set at a very demanding level to ensure the best possible competition on behalf of passengers and taxpayers."

Euan Cameron, managing director of Arriva Trains, said: "We are very pleased to have pre-qualified for the Northern Rail franchise.

"We are looking forward to working with the SRA and the local Passenger Transport Executives to develop proposals for the future of rail services across the North of England."

The other shortlisted companies are GB Railways; the Eurailco UK consortium; and a partnership between Netherlands Railways and the Serco Rail company which runs Docklands Light Railway.

The Northern Rail franchise will run for up to seven years. The SRA expects to announce preferred bidders for the franchise next spring.