The Scottish Government's Transport Minister has confirmed that the Levenmouth rail link will be double tracked and electrified.
Graeme Dey MSP paid a visit to the site today where the new transport link will be located.
He also announced the option being taken forward for where the Leven and Cameron Bridge stations will be placed.
Leven Station is to be put behind the Leisure Centre and Cameron Bridge Station will be to the east of the A915.
The options were confirmed following detailed development work as well as stakeholder consultation for the new transport link.
Network Rail has been commissioned to design and build it.
The project costs will be confirmed with the final business case, which is expected towards the end of this year.
Project timescales will depend on Fife Council planning processes.
It's hoped the line will be open by the end of 2023.
The Transport Minister, speaking to Kingdom FM in a video above, said the project will be "transformative" for local commuters.
David Alexander, the SNP Fife Council Co-leader, said: "There’s a lot of investment and partnership work coming together in Levenmouth.
"Today’s announcement is a huge, and very welcome, step forward for the region and builds on the work of the £10 million Levenmouth Reconnected Programme which aims to unlock access to culture, leisure, training and employment opportunities for the area.
“This also means a lot personally, as a local councillor and a train user from the old Cameron Bridge Station.
"Many people have fought to deliver this, with ultimate success."
David Ross, Fife Council's Labour Co-leader, said: "We are working to maximise the economic and social value of the new Levenmouth railway to the local area, developing initiatives and projects that build on this railway investment-led opportunity.
"A lot of hard work by many people went into getting us to this stage.
"This represents a huge opportunity for Levenmouth and the whole of Fife and we’ll make sure we make the most of it."