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South West Trains said services across its entire network, including to and from London Waterloo, may be cancelled, delayed by up to 90 minutes or revised.
Disruption is expected until the end of the day.
A message to passengers said: "Our control room has confirmed that we have lost all signalling in the Earlsfield area and are not able to run trains into London Waterloo.
"Due to the location, this has taken place our ability to run a train service this morning has been severely hampered.
"Our engineers are on site and are working hard to restore the signalling so we are able to run trains.
"We strongly advise you not to travel towards London Waterloo. If you do travel, please consider alternative arrangements and use other train operating companies.
"Some trains that commenced their journeys before this incident occurred, may be altered or revised at short notice. Some trains may also be diverted via an alternative route."
SWT had already warned of disruption due to a track defect on the line between Woking and Surbiton which had already disrupted the London-bound service.
South West Trains has said signal failure at London Waterloo has caused major disruptionThe disruption comes just weeks before the start of major work to extend platforms at Waterloo, which will lead to three weeks of delays.
Stagecoach has lost the franchise to run SWT, with a consortium of the First Group and Hong Kong based MTR taking over next month.
Passengers have been advised to avoid travelling to Waterloo.
Engineers are on site and are “working hard” to fix the problem.
There are also severe delays on the London Underground with the District and Circle lines suffering major delays caused by over-running engineering works..
There is no service on the District line from Parsons Green to Edgware Road and South Kensington and between West Kensington and South Kensington.
Mark Wild, Managing Director of London Underground, said: "I'm extremely sorry for the delays customers are experiencing today. This has been caused by a late finish to engineering works to improve the track at Earl's Court, which means we have been unable to run a full service. We are working hard to get services back to normal as quickly as possible. We will try to automatically refund those delayed but otherwise people should use their online Oyster account or call the contact centre."
This article first appeared on www.express.co.uk
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