Dalmarnock Station, which is run down and used mainly by football fans travelling to Celtic Park in the city’s east end, is minutes from several key games venues, including the new athletes’ village, National Indoor Sports Arena and Velodrome.

But planning officials fear its current condition, described as “unsafe and unpleasant”, would be a blight on Glasgow’s reputation.

After months of negotiations, plans are now being advanced by Glasgow City Council, transport authority Strathclyde Partnership for Transport (SPT), and development agency Clyde Gateway for a major overhaul. This will include installing lift access to platforms, a new station building and covered passenger area. A new frontage will also raise its profile.

The redevelopment is seen as one of the first moves to ensure that tangible benefits are left for citizens, long after the last athletes have departed.

It is planned to tie in with a major economic regeneration of Glasgow’s east end, where Clyde Gateway is hoping to create 20,000 additional jobs.

Robert Booth, the council’s director of land and environmental services, said: “Dalmarnock Station is the gateway to the east end of the city and games area. There has been a recognition by the Scottish Government, the council, SPT and Clyde Gateway that the condition of the station has to be addressed.”

Alistair Watson, chair of SPT, added: “Dalmarnock Station is at the heart of the games area and only minutes away from Glasgow city centre. SPT has always said it will be a vital transport hub for 2014 and a big part of the regeneration of the area. Early development work is done and we’re now looking to work with our partners on how the future funding to deliver a new station can be achieved.”

The station was heavily used until the 1960s, when the east end was still a bustling centre of economic activity. But its decline has mirrored the fortunes of the area, which is in Scotland’s top 5% “most deprived” and has high levels of unemployment.

The station currently has no covered or heated waiting area for the public, poor accessibility for disabled passengers, and is regarded as unsafe and unpleasant, according to a paper prepared by Gordon McLennan, SPT’s assistant chief executive.

Its location, on Swanston Street off the main road, also leads to poor awareness among the public, the report found.

Following discussions between the parties four options were identified for improving the station, ranging from a complete overhaul to “cosmetic” improvements.

The plans are now expected to be put to Network Rail, the not-for-profit company that runs the railways, for detailed investigation into costed options, following approval by SPT on Friday.

The Herald understands that a funding package has been agreed in principle between SPT, Clyde Gateway, and Glasgow City Council that will cover the more ambitious options, expected to cost between £7m and £8m.

SPT is expected to request £2m from the council and the same sum from Clyde Gateway, and has also made an application for European funding for £2.76m, with the remainder expected to be found from its own budget.

Councillor James McNally said: “The games give Glasgow some great opportunities to develop and expand the projects we are already delivering to promote public transport use; reduce our reliance on the private car, and improve air quality.

“We will be working with the organising company and our existing partners to ensure the city not only moves smoothly during the games, but enjoys the benefits for generations to come.”

A spokesman for Transport Scotland said: “We are aware of the interest in the redevelopment of Dalmarnock Station in advance of the Commonwealth Games in 2014.

“The feasibility of this redevelopment work is one of the subjects currently under discussion with our partners at Glasgow City Council, SPT, Network Rail and ScotRail.

“The focus will be on how Glasgow’s transport infrastructure can best meet the demands placed on it by the two-week games, while continuing to serve the city for years into the future.”