The Western Rail Corridor has been included on a list of prioritised transport networks in the EU.
The European Parliament has voted on the Connecting Europe Facility programme, which grants EU funding for transport and energy projects.
The development of a section of rail line – which would connect Derry, Sligo and Galway – is now part of programme.
North West Sinn Fein MEP Matt Carthy, who put forward the request for the project to be included, says it will now require the support of the Irish government to become operational.
