As part of Transport for London's Five Year Investment Programme, the East London Line is being extended in two phases.

Phase One will extend the East London Line north to Dalston Junction and south to New Cross, Crystal Palace and West Croydon. 

Phase Two will further extend services west to Clapham Junction via Surrey Canal Road.

Phase One involves building new stations at Dalston, Haggerston, Hoxton and Shoreditch. The new stations will open when the East London Railway opens by June 2010.  A further extension to Highbury & Islington from Dalston Junction will open by February 2011. This further extension will give passengers excellent interchange to the Victoria line and National Rail services. It will also link the East London Line will the North London Railway, currently Silverlink's North London Line, to form the beginning of an orbital railway around the capital.

To mark this new journey the East London Line will be re-named the East London Railway. Collectively the railways will be known as London Overground.

London Overground services will be shown on the Tube map and deliver an Underground-style service. Passengers will benefit from similar fast, frequent services, ticketing arrangements and safety and security standards. New high-capacity air-conditioned trains with audio and visual announcements will operate on the East London Railway when it opens by June 2010.

Although Phase Two is currently unfunded, Phase One will ensure that the powers for construction are preserved.