Mustoe Merriman Herring Levy is tipped to win the 1.5m account for the rail company West Anglia Great Northern (WAGN).
The agency is understood to have pitched for the business against Carlson and HDM Linx.
It is understood the campaign will consist of a combination of promoting cut-price offers for tickets and a branding push using print and posters.
The rail company is part of the AIM-listed Prism group, which floated three years ago. The group also operates three other franchises – LTS Rail, South Wales & West and Cardiff Railways.
WAGN is expected to profit from the launch of British Airways’ new low-cost airline, Go, which is to operate out of Stansted airport. It currently runs two trains an hour from London’s Liverpool Street station to the airport, but this is expected to increase if the new airline is a success.
The rail franchise also runs services from King’s Cross, Moorgate and Liverpool Street to East Hertfordshire, Cambridgeshire, West Norfolk and North-east London.
It makes 52 million passenger journeys a year and each route has its own brand name and management. Brands include Stansted Skytrain and Cambridge Cruiser.