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The San Francisco Municipal Transportation Agency (SFMTA) has received approval from the Federal Transit Administration (FTA) to begin preparing a 1.7-mile alignment of the Central Subway project for tunneling and station construction.

The Central Subway project will extend the Municipal Railway’s T Third Line from the 4th Street Caltrain Station to Chinatown to provide a direct, rapid transit link from the Bayshore and Mission Bay areas to SoMa and downtown San Francisco. Four new stations will be built along the alignment.

“The Central Subway project will create jobs, improve local and regional transit options and reduce congestion in one of the busiest areas of the city,” said San Francisco Mayor Edwin Lee in a prepared statement.

The FTA approval, a letter of “no prejudice,” means the project is one step closer to a full funding commitment for the project through the New Starts program, SFMTA officials said.

Revenue service on the Central Subway is expected to begin in 2019. The subway project is the second phase of the Third Street light-rail project.