RIVAL train firms GNER and Grand Central are to face-off against each other in a final bid to persuade rail chiefs of their case for new services.

The Office of Rail Regulation (ORR) had been expected to announce a final decision on both firm's bids.

But after having already extended a consultation period for interested parties, the ORR has revealed the final outcome will not be known until mid-March, stating that there are some issues which require "further discussion and clarification".

GNER, meanwhile, has requested a hearing before the regulator, at which both companies will be present.

The East Coast Mainline operator is challenging a statement by the ORR that it is "minded to" reject its application for 12 extra trains between Leeds and London.

Grand Central is also awaiting the result of provisional approval for three daily services running to London King's Cross from Sunderland, Hartlepool, Eaglescliffe, Northallerton and Thirsk.

It is understood the hearing will discuss GNER's concerns over capacity on the route and an economic appraisal of its application.

A spokesman for GNER said: "This hearing will form part of the decision-making process.

"Interested parties will be able to make their case, having only been able to submit written responses so far.

"We welcome this decision by the regulator on the basis that they are clearly taking notice of the many representations received on our behalf from passengers, stakeholders and MPs."

Ian Yeowart, managing director of Grand Central Railway, said: "GNER has had 51 weeks to prove their case and clearly they are not comfortable with what they have managed so far, otherwise they would not have asked for a hearing.

"We are disappointed with this further delay, but that's life.

"We have waited a long time for this and don't mind having to wait a bit longer."

Both firm's applications are inextricably linked, since Grand Central will have to share GNER's East Coast Main Line route and any final decision on one could affect the other.

* A claim by GNER that some of its trains could be cancelled or delayed by up to half-an-hour if Grand Central services are given the go-ahead has been rejected.

Responding to the claim, the ORR said: "Our view is the effects on GNER services would be either negligible or none at all."