The £350million redevelopment of New Street station is still on track after a "hiccup" surrounding the flow of funds towards the project, transport chiefs said yesterday.
The Department for Transport has strongly reiterated its commitment to the scheme after a report by passenger transport executive, Centro, indicated money earmarked for the scheme was being withheld.
It said £7million ringfenced for the scheme had not been transferred to the DfT along with its powers when the Strategic Rail Authority was wound up in August.
But Centro director general, Rob Donald, told councillors he had been reassured in a letter from the DfT, which has assumed the SRA's role of governing the rail network, that it will honour all of its financial commitments to the scheme.
At yesterday's West Midlands Passenger Transport Authority transport strategy committee meeting Mr Donald told councillors: "I am told that the suggestion they have not had all the money transferred from the SRA for the project is inaccurate.
"The DfT have said that they are honouring all the commitments the SRA has made about New Street Station.
"The truth is that the money has not yet been allocated but that is not surprising as it is for 06-07, and we are not into that financial year."
The report had stated the redevelopment scheme was "currently facing problems" because "money set aside by the SRA... has not been transferred to DfT Rail."
A spokesman for Centro added: "The fact it was not thought to have gone from one account to another was more a hiccup due to holidays and the business of a complicated handover rather than anything else."
More than £5 million has already been spent on design work on the building which will replace the current structure, built in the mid 1960s.
Further development of the station rebuild - primarily to improve the city's image and address a critical passenger capacity shortage - has been costed at £10million between December 2005 and March 2008, with the City Council funding £1million per year.
Yesterday the PTA executive approved a request by Centro for £200,000 for money needed to take the project further in the short term.
A spokesman said the payment was merely "bringing forward" money it had promised to contribute to the project in order to sustain its momentum, rather than plugging a shortfall in money pledged by the DfT.
"The DfT is very keen on this project and I believe we will have a landmark building in the very short term future in keeping with what is going on in the rest of Birmingham," Mr Donald told councillors.
"It is not the case that the project is at risk and we will make sure as best as we are able that the momentum continues."
Last July Prime Minister Tony Blair promised it would be a case of "when and not if" the station would be rebuilt.