Train operator First Great Western looks set to continue running rail services through Wiltshireto London Paddington for another three years.

New plans announced by the Government will see negotiations start over a deal up until July 2016.

FirstGroup’s contract had previously been due to finish in April but it was then granted a six-month extension until October.

The Government announced in January that competition to run the Great Western rail franchise would be scrapped because it wanted a re-think following the collapse of the West Coast Main Line franchise deal.

A Department For Transport spokesman said a deal up until 2016 was still to be decided but welcomed talks with First Great Western.

FirstGroup is also set to have its franchises for First Capital Connect and First TransPennine Express services extended under the deal.

Chief executive Tim O’Toole said: “This provides continuity and consistency for our passengers and enables us to continue to deliver considerable improvements to services.

“We look forward to reviewing the details of the upcoming franchise competitions as they are announced, and submitting further high-quality bids that deliver for passengers, taxpayers and shareholders.”

South Swindon MP Robert Buckland said: “I’m keen to make sure the franchise process is beyond reproof but I also want to be satisfied in the next three to four years that First Great Western will be able to continue making investment in the railway in terms of rolling stock and facilities so the service can further improve.

“And I will continue with my discussion with First Great Western to ensure that’s achievable.

“I know it’s difficult for them because there’s a degree of uncertainty but I don’t want to see this cause an end to investment in improving their services.

“And it’s in First Great Western’s interest to carry on improving the service because they’re going to want to be in a position to compete effectively to get the franchise.”

Chris Watts, of the Fair Farescampaign, said: “I would welcome the news if I thought that the motive was to undertake a reform of the current franchise system to the benefit of passengers.

“Sadly, I am suspicious that the Department for Transport Ministers are just kicking this headache into the long grass until after the next election when it will likely not be their problem.”