York-based Jarvis Rail could win a £250 million contract to maintain the flagship East Coast main line after rival firm Balfour Beatty lost its "preferred bidder" status.

Balfour Beatty has the current maintenance contract from Railtrack, and had responsibilities at Hatfield scene of the crash earlier in the autumn which killed four people.

But the contract is up for renewal next April for a five-year period. Railtrack originally viewed Balfour as a preferred bidder.

But it said today that this was withdrawn before the Hatfield crash because of disagreements and it was conducting a review of all its contractors.

And the contract could now go to rival business Jarvis - or Railtrack itself might decide to carry out its own maintenance work.

Experts believe the most likely outcome will be to keep outside contractors, but with greater supervision and monitoring.

The review is understood to be due for completion early next year.

A Jarvis spokeswoman today declined to comment on the developments.