Ms Allan said residents were frustrated with the current service and that the proposals put forward by the lobbying group Midlands Connect would be of huge benefit.
It is asking the government for money to develop business plans for a raft of proposals across the Midlands.
The potential benefits outlined for Shropshire residents are 32 extra passenger trains a day, reducing the journey time from Shrewsbury to Birmingham from 56 to 45 minutes, and a new, direct hourly service from Shrewsbury, Wellington and Telford to London.
Ms Allan said: “I hugely welcome the Midlands Connect proposals which would dramatically improve the rail network between Telford and Birmingham.
“The existing rail line linking Telford to Wolverhampton and Birmingham does not provide the capacity needed to support business and the growth of our town. Residents are very frustrated with the limitations of the existing service. We have secured an extra train per hour to start shortly but much more needs to be done. The local economy depends on it.
“I have been campaigning hard for improved services on our train line since I was elected as Telford’s MP and I will continue to push this proposal forward so that Telford will benefit.
“Rail connectivity is vital for business, jobs and growth and to securing Telford’s future.”