The government has confirmed a new railway station is to be built in Bradford, putting the city at the heart of the Northern Powerhouse Railway network.

The announcement is being hailed as a major milestone for NPR, with ministers claiming the project will transform connections between Bradford and major northern cities including Leeds, Manchester and York.

Under the plans, the new station will replace the existing 1970s-era facility and become part of Great British Railways, the publicly owned body that will oversee Britain’s rail network. The station is expected to be delivered during the 2030s.

The government said the scheme will provide more frequent and reliable services, while NPR will ultimately create a “turn-up-and-go” railway for passengers from Bradford, with multiple trains an hour operating between major northern cities.

Alongside transport benefits, the project is expected to act as a catalyst for wider regeneration. Bradford Council estimates that a new station, delivered alongside the proposed West Yorkshire Mass Transit network, could unlock thousands of new homes and jobs and generate more than £1bn of economic benefits.

The station is also expected to support regeneration of Bradford’s Southern Gateway area, which local leaders have identified as a major opportunity for growth and development.

Transport secretary Heidi Alexander described the announcement as an “important milestone” for the city.

“By bringing Northern Powerhouse Rail into the heart of the city, we are unlocking the huge potential Bradford offers – improving connections, supporting economic growth and setting the foundations for new homes, jobs and opportunities across the region,” she said.

West Yorkshire mayor Tracy Brabin said the commitment would help unlock Bradford’s “untapped potential” through faster and more frequent rail services and wider city-centre regeneration.

Bradford’s new city centre station is a key part of the government’s Northern Growth Strategy, which, with Northern Powerhouse Rail, is electrifying and upgrading routes between Leeds, Bradford, Sheffield and York, improving journey times and reliability across the region.