Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL.

London Overground services will start operating on the North London Railway when it passes to TfL in November 2007, and will operate an integrated service including the East London Railway when it re-opens, after work to extend the line, in 2010.

The linking up of the North and East London Railways will be the first step towards an orbital railway for London. In phase one, TfL is investing £1bn to build the new East London Railway, by extending the existing East London Line north to Highbury & Islington and south to New Cross, Crystal Palace and West Croydon. Phase two would provide a further link between Surrey Quays and Clapham Junction, completing the orbital rail network and serving 20 of London's 33 boroughs.