The HS2 railway line is likely to be extended to London Euston, the Transport Secretary has signalled.

Louise Haigh said “it would make absolutely no sense” to have the high-speed route terminate at Old Oak Common in west London.

Her comments come after work to expand Euston station to accommodate HS2 was halted by the previous Conservative government last year because of the mounting costs.

Haigh told BBC Radio 5Live a decision on where HS2 will end would be “clear soon”, with an announcement set to be made around the time of the Budget on 30 October.

Currently, the plan to terminate at Old Oak Common would mean passengers travelling to central London would have to change trains.

But Haigh told the BBC on Tuesday: “It would make absolutely no sense to build a £66bn high speed line between Old Oak Common and Birmingham.”

Former prime minister Rishi Sunak said in October last year, that extending HS2 from Old Oak Common to Euston, which is much closer to London’s centre, would be reliant on private investment and save £6.5bn of taxpayer’s cash.

It is currently unclear how the current Labour government is planning to fund extending HS2 to Euston. The Department for Transport has not responded to further questions from the BBC following Haigh’s comments.

However, in February, the Commons’ Public Accounts Committee released a report stating it was “highly sceptical” that the government would be able to attract private investment on “the scale and speed required” to make the extension to Euston as success.

Haigh said: “Even under the previous government’s chopped and changed and discredited plans for HS2 Euston was always going to be part of the solution.”

HS2 was originally a Labour party commitment, announced back in 2009, but since then, the project has been thwarted by ballooning costs and problems around its impact on communities.