Transport secretary Patrick McLoughlin wants a better train system for Leeds and Yorkshire.
The announcement comes as part of an agreement to hand over various responsibilities to local authorities, which will work alongside the Department for Transport (DfT) in managing Northern and TransPennine services, including overseeing the contracts, the Yorkshire Post reports.
He said: "Our connections in that part of the UK are not as good as they should be. What I hope this does is give a voice to local people - making it a bit more accountable to local politicians."
In 2004, DfT awarded Abellio and Serco the Northern contract, void of any commitment on their part to invest in new rolling stock. As a result, the trains have not been improved while passenger usage has increased by 40 per cent, adding to overcrowding.
The current 15-year contracts for the Northern and TransPennine lines will see the winner start in February 2016. Mr McLoughlin said authorities for this line had a very big plan, which he suggested rolling out in stages with DfT.