"I took a call this evening in New York from the UK Secretary of State for Transport, telling me that he will no longer be awarding the West Coast Main Line franchise to FirstGroup.
"From the moment we found out that FirstGroup had been made the preferred bidder with a completely unrealistic bid, we questioned the way the offers had been assessed.
"I am pleased to say that the DfT has looked at all of the facts and found significant flaws in the way it's officials handled the process.
"They have basically acknowledged that what we had been saying is correct."
Scotland's Transport Minister will outline his concerns at Holyrood
Russell Brown MP, has described the admission of flaws in the West Coast Mainline bidding process as "an utter shambles".
The competition to operate the West Coast Main Line has been cancelled after flaws were discovered in the bidding process.