The City of Vancouver has secured a “historic” deal with the Canadian Pacific Railway Limited (CP) to buy a disused 9km (5.6 mile) stretch of railway line which it intends to transform into a vast community park.

The Arbutus Greenway will be used for public use following the CA$55m (US$41.1m, €36.8m, £28.7m) agreement, which will see 42 acres of land freed up for development as green space, linking the neighbourhoods of False Creek and Marpole.

According to local reports, CP has owned the land for more than a century but has not operated trains there for 15 years.

“This is great news for Vancouver,” said the city’s mayor Gregor Robertson. “This is a once-in-a-generation opportunity, not unlike New York’s High Line and other international examples. City Council is looking forward to the next steps in this process and to working with the community to enhance the greenway for all users.”

The City will now launch a design process for the site and solicit public input on how the space should be used – as a park, a walking and cycling route and a major tourist attraction. One of the ideas being considered is to restore the track as a light railway running through the park.

The agreement signals the end of a four year negotiation process between the City and CP over the future of the rail corridor.

CP’s president, Keith Creel, said that the “landmark agreement” would allow the future owner to develop its green space “while providing a fair return to CP and our shareholders.”

The project is the latest in a growing line of green space projects being developed on disused railways following the huge success of the High Line. Schemes are currently in development in London, Singapore and South Korea.