Transport for London (TfL) has agreed with the Government to extend its existing funding package until Friday.

This is the latest in a series of short-term extensions as the transport body tries to secure a long-term deal.

TfL has repeatedly issued stark warnings that it will be forced to begin a “managed decline” of the capital’s public transport network unless it secures a multi-year funding deal to replace fares revenue lost during the coronavirus pandemic.

Mayor of London Sadiq Khan said: “This extension to the current funding deal until Friday February 25 will allow negotiations to continue.

“The pandemic is the only reason TfL is facing a financial crisis.

“I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, long-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.

“London’s economy plays a huge role in the national economy and around 43,000 jobs outside London depend on TfL’s investment.

“If the Government fails to support TfL at this difficult time, it could impact TfL’s UK-wide supply chain, hitting jobs and growth and holding back the economic recovery in London and across the UK.”

Transport Secretary Grant Shapps said: “We have provided TfL with a deal that both supports London’s transport network and is fair to taxpayers across the UK.

“They have asked for more time to consider the settlement, therefore we have agreed a short extension until February 25 for this to take place.”

He added: “Since the start of the pandemic, we have supported TfL with over £4.5 billion funding through extraordinary funding settlements for TfL.

“We have recognised the reliance of London’s transport network on fare revenue.”

Manuel Cortes, general secretary of the Transport Salaried Staffs’ Association, said: “Yet again we see Conservative ministers treating our great capital city with contempt.

“They need to stop playing politics with Transport for London and offer a long-term meaningful financial package.”