First Group, which runs the Great Western Rail Service, will keep the franchise for a further three years.
The new timetable for rail franchise bids was announced by the Transport Secretary this morning.
First Group was due to bid again this October for the service operating trains from the West Country to London Paddington. This has now been delayed and they won't have to bid again until July 2016.
The main railway line between Taunton and Exeter has finally reopened. The junction at Cowley Bridge had been closed by flood damage.
New Road is still closed because of flooding between Riverside in Burrowbridge and Northmoor Lane in Lyng. Somerset County Council says it will remain closed for the rest of the week at least.
Rush-hour rail problems that plagued passengers on many days in November continued for commuters in the South West on the first working day of December.
Travellers whose services were still affected by last week's floods were hit by a combination of difficulties including late-running engineering work. The aftermath of the floods continued to hit services in devon, with buses replacing trains on some routes.
Replacement buses are running on First Great Western Services between Exeter St Davids and Crediton due to flooding. But the good news is that the Tarka line has now re-opened between Crediton and Barnstaple following major work on the track.
The trainline has reopened between Newton Abbott and Exeter after it was closed after a landslip.
Thousands of tonnes of rubble fell onto the track at Teignmouth following heavy rain. Network Rail say services will still be very limited and travellers should check which trains are running.
Skybus has transferred all flights from Land's End to Newquay Cornwall Airport until Thursday 6 December because more heavy rain is forecast this weekend.
This will allow time for the grass runway to dry out in the better weather predicted for the middle of next week.
All Skybus services to and from St Mary’s Airport on the Isles of Scilly will operate via Newquay today and on Monday, Tuesday and Wednesday. Skybus does not operate on Sundays.
The mudslide at Teignmouth has meant the closure of the line between Exeter and Plymouth, with travellers being bussed to and from the stations there.
It's hoped the line will be re-opened in the next few days - but it could be at least a fortnight before services return to normal.
Jeff Welch has the latest from Teignmouth:
The main rail line between Exeter and Newton Abbot will be closed for several days after it was hit by a landslide at Teignmouth.
It had only just reopened after flood damage last week.
The RAC is urging motorists not to take unnecessary risks by trying to drive through flooded roads their cars cannot cope with.
The rescue service says its seen a sharp rise in water related break downs over the last few days and is appealing to drivers to use an alternative route instead of taking their chances. Although some motorists are heeding the warning, others aren't.
The week of heavy rain has caused another day of travel disruption for rail passengers.
At its worst, parts of the main line in and out of the South West were left completely submerged by fast flowing flood waters. The problems could continue for another fortnight.
Engineers are working around the clock to repair the damage and get the rail network back up and running.