Transport for London (TfL) is seeking a contractor to construct a rail extension at Barking Riverside.
The line from Gospel Oak to Barking will connect London Overground services to a new station at Barking Riverside. Construction is scheduled to begin in late 2017 with train services starting in 2021.
TfL is part-funding the project from its £360M growth fund, which is supporting 14 transport projects across London.
The rail extension will support a new housing development for 10,800 homes.
A formal invitation to tender for the extension is expected in 2017, once the design stage has been completed. A public inquiry into the project will convene in autumn 2016.
“The extension of the Overground will be key to the success of the exciting new developments at Barking Riverside, with a new station built alongside 10,800 new homes, shops and restaurants, and new school and health services,” said deputy mayor for transport Val Shawcross.
“As we have seen in other parts of London, the extended Overground line will be an integral part of ensuring regeneration benefits everyone in the community, with excellent transport links to the rest of London and the creation of new homes and jobs.”