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BANGKOK - The Thai cabinet has approved a draft memorandum of understanding (MoU) between Thailand and China on railway cooperation, a government spokesman said Tuesday.

The draft MoU will allow China to play a lead role in building an 867-kilometer dual-track rail that will connect northeast Thailand's Nong Khai province, capital Bangkok and eastern Rayong province, Yongyuth Maiyalarp said.

The route, divided into three sections, will use the 1.435- meter standard gauge and trains will be operated at speeds of 160- 180 km per hour.

The cabinet has also approved a proposal to set up a Thailand- China joint panel to work out details of the rail project, according to Yongyuth.

The project, which is estimated to cost about 400 billion baht (12.2 billion U.S. dollars), got the green light from the Thai cabinet earlier this month.