The scheme would see the DLR extended from Gallions Reach to Thamesmead, with a new station at Beckton.
This will finally bring a rail link to one of London’s most isolated areas.
Thamesmead is one of London’s most transport-deprived communities, and leaders say the extension would begin to tackle decades of inequality.
Early modelling suggests journey times to Stratford could go from 55 minutes to around 25 to 30 minutes.
Passengers would also be able to reach Canary Wharf in 20 to 25 minutes and Liverpool Street in 35 to 40 minutes.
Planners believe the extension could unlock 25,000 new homes, up to 10,000 jobs and nearly £18 billion in private investment over 30 years.
More than half a million people living in Erith and Thamesmead and the surrounding area are expected to benefit.
Abena Oppong-Asare, MP for Erith and Thamesmead, has been one of the project’s biggest campaigners, having launched her #NextStopThamesmead campaign shortly after being elected in 2019.
She has spent years pushing for cross-party and cross-institution support, working with the Mayor of London, TfL, local authorities, developers and ministers.
She said: “This is a huge step forward for Thamesmead.
“For too long, residents have been cut off from the transport links that much of London takes for granted.
“The DLR extension will finally change that – opening up access to jobs, education and opportunities across the capital.
“I have championed this from day one.
“I raised it in my maiden speech, and I’ve pushed ever since for the investment and regeneration our community deserves.”
Len Duvall, London Assembly Member for Greenwich and Lewisham, said: “This is fantastic news for Thamesmead and South East London.
“It will finally connect Thamesmead to the wider London transport network, unlock thousands of much-needed homes and bring new jobs and investment to the area.
“I want to thank local residents, community groups, councillors, MPs and Mayor of London who have consistently made the case over many years for this project.
“Their determination has been crucial.”
The Mayor of London, Sadiq Khan, also welcomed the reports.
He said: “I’m really pleased that the Government is backing the DLR extension to Thamesmead – something I’ve long called for alongside London’s businesses and communities.
“The project is a win-win and a massive vote of confidence in London.”
The development aligns with Chancellor Rachel Reeves’ intention to prioritise growth in the Budget and follows his previous commitment at the Spending Review to explore options for delivering the extension with Transport for London.
It also comes after Thamesmead was named by the New Towns Taskforce as one of 12 recommended locations for the next generation of new towns.
The Autumn Budget will be delivered on Wednesday (November 26), when full confirmation of the plans is expected.
