Arriva Rail North Limited is to take over the Northern Rail franchise in April from current operator Serco Abellio.
The Government saidĀ that Arriva Rail, along with First Trans Pennine Express, will oversee a Ā£1.2 billion boost to services with 500 new carriages, room for 40,0000 more passages and an overall more modern experiences.
It is also expected that smart ticketing will be in place along with free Wi-Fi in carriages.
County Coun John Fillis, cabinet member for highways and transport, said: “Through Rail North, local authorities have had unprecedented input into this process and the franchises beginning in 2016 will result in much-needed improvements to modernise our rail system.
“This investment will result in more frequent, higher capacity, services between key locations, modern rolling stock with pacer trains being withdrawn by 2020, and better facilities at a number of stations.”
Arriva has plans to extend Sunday services in the north while First has promised discounted fares for 16-18-year-olds and jobseekers.