Levenmouth rail link to reopen in £70m project
Detailed designs are to be drawn up for the Levenmouth link, which will connect Leven to the Fife Circle.
It is estimated the project, which also includes improved bus services, cycle and walking facilities, will cost about £70m.
Transport Secretary Michael Matheson said he hoped the line would be operational within five years.
The line will also feature stops at Leven and Cameron Bridge.
David Ross, Fife Council co-Leader, said: "We have relentlessly campaigned for this link that is set to increase employment opportunities, as well as improve access to education, health and leisure services."
He added: "The rail network is now set to be taken forward to the next stage of development, and we look forward to seeing detailed designs."
The Levenmouth Transport Study suggests that by 2037 there will be 750,000 passengers annually, boarding or alighting trains in the area.
The train journey time from Leven to Edinburgh will be 70-75 minutes.