Transport Secretary Patrick McLoughlin announced the temporary deal, which will see Virgin carry on with the London to Scotland route until November 9, 2014.
After this time the West Coast Main Line will be let under a long-term franchise.
Remember the Virgin Trains mess? Later an official report into what went wrong will be made public.
The Government has been forced to admit the profitable West Coast Main Line contract has yet to be signed, thanks to a legal bid by Virgin.