The DfT has shortlisted First Group, Keolis/Eurostar and Stagecoach/Virgin to submit detailed bids to run new East Coast services from next year.
The DfT said the three bidders had successfully passed the pre-qualification evaluation stage and can now start work on developing their plans for the franchise, before they are invited to tender. This means they have demonstrated they have the necessary financial strength and operational experience to run the franchise.
Rail minister Stephen hammon said that "giving passengers more will be at the heart of the new franchise. That means new services and journeys that are faster, more punctual and more comfortable".
The Government started the competition in October saying it wanted innovative timetables, innovative ways to transform the customer experience, investment along the route, particularly in stations, demonstrating how services can support economic growth, and how communities can be involved in local decisions.
The DfT plans to issue the invitation to tender at the end of next month.
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