The German Government is reportedly planning to spend approximately €50bn ($57bn) over the next decade to modernise the national rail network.
German newspaper Bild am Sonntag reported that the government will invest in state-owned rail operator Deutsche Bahn, which is under pressure to improve services and cut train delays.
Amid operational and service-related issues, the rail operator also needs to repay a debt of almost €20bn.
The newspaper reported that Deutsche Bahn has a deficit of €1.2bn per annum due to network maintenance.
Plans are currently in place to launch a ten-year modernisation programme for the rail network.
The finance ministry will reportedly spend more than €1bn annually on the maintenance of the rail network between 2020 and 2025, while an additional €2bn per year will be invested between 2025 and 2030.
The company said that the money will be used to upgrade nearly 1,500km of track, along with 650 train stations and 300 bridges.
Amid growing concerns, Deutsche Bahn unveiled a €10.7bn modernisation project in February.
Recently, Chinese telecoms company Huawei signed a contract with German national railway company Deutsche Bahn to build its radio communication system.
The system, known as GSM railway communication, will help the rail operator to better coordinate the entire rail traffic.