Troubled rail operator Northern has the finances to continue only "for a number of months", the government has said.
Transport Secretary Grant Shapps has announced he is evaluating a proposal from the train operator on options for continuing its franchise.
The process could ultimately lead to the government taking control of services, he said.
Arriva Rail North, which operates Northern services, apologised to customers for ongoing disruption.
The company has faced a range of issues in recent years,
such as widespread cancellations amid the introduction of new timetables.
A final decision on the future of Northern will be taken later this month.