The new high-speed rail line between Birmingham and London is to be delayed by up to three years, BusinessLive understands.
The first leg of HS2 will run between the two cities and was due to open in 2026 but this is set to be put back until 2028 or 2029.
Transport Ministers at Westminster are expected to confirm the delay this week - most likely tomorrow - as well as reports the projected cost of the whole scheme has risen from £56 billion to around £80 billion.
This includes the second phase of rail lines between Birmingham and the East Midlands, Yorkshire and North West which is due to be completed in 2033.
A review into the long-awaited line has been ordered by Prime Minister Boris Johnson and is due to consider various other options including scrapping it or finding ways to bring the benefits to the North of England more quickly.
But the delay is not a result of the review, instead coming after a report by HS2 chairman Allan Cook for the Department for Transport warned it was not possible to complete the line within the expected timescale.
It remains a possibility that the review will recommend cancelling HS2 or making major changes which could cause further delays.
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The review will be chaired by Douglas Oakervee, a former chairman of both HS2 and the new Crossrail project in London.
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West Midlands Mayor and HS2 supporter Andy Street will be a member of the review panel and has previously said he would be making the case for HS2 and was confident he could win the argument.
Other members of the review panel include John Cridland, a former Director General of the CBI and now chairman of Transport for the North, the transport authority led by northern council leaders and mayors.
Birmingham Hodge Hill MP Liam Byrne said HS2 must go ahead, posting on Twitter: "Cancelling HS2 will plunge us back into recession just as the Brexit asteroid hits us.
"So this review needs to be shorter, sharper - and give us the green light to speed up!"
Opponents of the project have long since argued that the money should be invested into the existing network to create more capacity.