FirstGroup had said it would seek to run a direct Shropshire link from 2016.
FirstGroup Chief Executive Tim O'Toole said the move provided "continuity and consistency for our passengers".
BBC: Great Western London to south Wales rail contest scrapped
FirstGroup said it already ran an award-winning service and was looking forward to welcoming new passengers.
The award of the franchise to FirstGroup was scrapped after ministers found bidding process flaws.
BBC: West Coast Main Line: Civil servant Kate Mingay speaks out
FirstGroup has made a heroic pledge to keep increasing annual revenue by more than 10%.
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FirstGroup, Stagecoach, Arriva and National Express have gone to court in an effort to get their money back.
Scottish rival FirstGroup initially won the contract to run the line, with Stagecoach's joint bid with Virgin losing out.
Four companies were bidding to run trains for 15 years from next April: FirstGroup, Arriva, National Express and Stagecoach.
FirstGroup was awarded the contract for the 13-year rail franchise ahead of Virgin, but it was abandoned last year.
FirstGroup said it was "disappointed" with the decision to scrap the multi-billion-pound contract.
The government says FirstGroup's new trains should add a further 12, 000 seats a day on West Coast routes from 2016.
The operator, which is part of FirstGroup, plans to discontinue an undisclosed number of services in East Lothian and Midlothian.
FirstGroup said that it had had "no indication" of any problems until it was contacted by the Department for Transport.
The Great Western franchise, run by FirstGroup and due to end in October this year, will not start until July 2016.
Last week, Aberdeen-based FirstGroup warned that margins at its UK bus division would be squeezed from 13% to 8% this year.
Kate Mingay was one of three officials suspended in October after the government scrapped its decision to award the franchise to FirstGroup.
In March last year, FirstGroup, National Express, Stagecoach, and Arriva, a division of Deutsche Bahn, were short-listed for the Great Western franchise.
BBC: Great Western London to south Wales rail contest scrapped
The government is due to sign the 13-year contract with FirstGroup on Tuesday, following the Department for Transport's decision earlier this month.
FirstGroup had beaten current operator Virgin Trains to win the 13-year franchise.
It also puts FirstGroup in a tight spot shares swiftly plummeted by 20%.
The UK Transport Secretary Patrick McLoughlin said he wants to negotiate an interim franchise of at least two years with current operator FirstGroup.
BBC: Great Western London to south Wales rail contest scrapped
The decision to award the West Coast Main Line rail franchise to FirstGroup was scrapped because of "technical flaws" in the bidding process.
The government has scrapped a decision to let FirstGroup take over the route from Virgin after "technical flaws" were found in the competition process.
FirstGroup had said it was seeking to introduce a number of new services including, from 2016, services from London to Telford Central and Shrewsbury.
The government is not blaming FirstGroup, but implicit in the minister's statement is that FirstGroup's risk projections were either over-ambitious or just plain wrong.
However, the Virgin boss claimed promises made by FirstGroup in its successful bid were unrealistic and would lead to his rival's "almost certain bankruptcy".
In its bid, FirstGroup said it would introduce better wi-fi and food, more frequent trains and more seats, and would cut standard fares by 15%.
Turnover and profits at bus and rail operator FirstGroup were boosted by increased ticket sales at both its UK rail and US Greyhound bus division.
Sir Moir Lockhead is chief executive of FirstGroup, yet another British firm that is derided at home but is in fact doing rather well abroad.
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FirstGroup has said it wants to proceed "without delay or disruption" and would continue to prepare to start running the franchise on 9 December this year.
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