It is thought that the new station at Caernarfon will help to increase visitor numbers to the Ffestiniog and Welsh Highland Railway by an estimated 5,000 visitors a year.
The F&WHR already provides significant benefits to the wider local economy, generating an estimated £25m each year.
The heritage railway's Porthmadog Harbour Station recently reopened after a £1.3m rebuild. Building work at the new station may begin by the end of the year. The 25-mile long railway is the oldest heritage railway in Britain.