Transport Secretary Grant Shapps has instituted a review of the HS2 project that will examine "whether and how HS2 should proceed".
The review of the project, which is backed by many business groups but has faced strong opposition over its spiralling costs and impact on areas along the proposed route, will report to the Government by the autumn.
The review will be led by former HS2 Ltd chairman Douglas Oakervee and will be sent to Mr Shapps with "oversight from the Prime Minister and Chancellor of the Exchequer" by the autumn, the Department for Transport said.
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Mr Shapps said: "The Prime Minister has been clear that transport infrastructure has the potential to drive economic growth, redistribute opportunity and support towns and cities across the UK, but that investments must be subject to continuous assessment of their costs and benefits.
"That's why we are undertaking this independent and rigorous review of HS2.
"Douglas Oakervee and his expert panel will consider all the evidence available, and provide the department with clear advice on the future of the project."
Reacting to the announcement, Henri Murison, director of the Northern Powerhouse Partnership, said: “HS2 is a vital project to help rebalance the economy and make us more productive, alongside linked interventions including most notably Northern Powerhouse Rail.
“The Northern Powerhouse Partnership will be engaging positively with the review to make the case for why HS2 is so necessary, for cities like Leeds and Manchester, but also for those like Newcastle, Preston and Glasgow, which all benefit from significantly better connections under an integrated plan for a new railway to take city to city traffic off our largely Victorian network which we need for commuters and freight.”
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