Work on constructing an extension to the Luas line in Dublin is to begin next May.

The Cabinet  has approved the updated business plan for the €370 million project at its meeting today.

The 'BXD' line will run from the city centre to the Irish Rail stop at Broombridge on the north-side of Dublin and will also link the existing Red and Green lines.

Up to 800 jobs are expected to be created during the building phase with a further 60 permanent jobs when the project is completed in late 2017.

'Should have been joined up years ago'

"This is an important step for the Luas BXD project, which will link up the existing Luas lines and give Dublin an integrated commuter rail network for the first time" Transport Minister Leo Varadkar said.

"Cabinet has discussed the business plan for Luas BXD, and I have now asked the NTA and RPA to proceed with the procurement and contractual arrangements which are necessary to allow the project to proceed in 2013".

"The two Luas lines should have been joined up years ago. It’s a privilege for me as Minister for Transport to be able to finish the job" he added.

Funding for the project has been included in the capital allocations under the Infrastructure and Capital Investment 2012-2016 plan of government.

The first stage of construction - the pre-construction enabling works - is due to start in May 2013 with the main construction works starting in 2015.

The project is scheduled for completion in late 2017.