The £17.5m Penwortham Bypass has received planning approval and work could begin within the next few months.
Lancashire County Council's Development Control Committee have given planning approval for the new road, linking the A59 Liverpool Road to the A582 at Brown Hare Roundabout.
The aim is to reduce congestion and queuing through the centre of Penwortham, especially at peak times.
Once the bypass has been completed, the reduction of traffic will allow the centre of the town to benefit from improvements to the public realm, improving the cycling, walking and public transport facilities. It will also provide opportunities for new bus priority measures along the A59, between Hutton and the city centre. People will be able to have their say on these proposals in the coming months.
The school playing fields at All Hallows Catholic High School will be relocated and improved as part of the bypass work, providing them with improved drainage and better access from the school.
Construction of the road is estimated to take around 20 months, with a significant percentage of the work taking place off the existing highway network.
The Penwortham Bypass is one of several major road schemes being funded through the £434m Preston, South Ribble and Lancashire City Deal. This is an agreement between Lancashire Enterprise Partnership and Preston City Council, South Ribble Borough Council and Lancashire County Council, along with central government and the Homes and Communities Agency (HCA).
The plans for the bypass have been developed by Lancashire County Council.
County Councillor Keith Iddon, Cabinet member for highways and transport, said: "The Penwortham Bypass had been discussed for many years, so this is a significant step forward in delivering this new road.
"We're pleased that once again City Deal is able to unlock the potential of the area and help people to get around. We're keen to get started on this important project, which could begin in the coming months.
"The bypass is a key City Deal project, along with the Broughton Bypass which is nearing completion and scheduled to open in October.
"We're already seeing a lot of progress from our City Deal, which will transform the area and bring new jobs and economic growth."
Councillor Peter Mullineaux, Leader of South Ribble Borough Council, said: “This is great news for the people of Penwortham, as well as those from the surrounding area. Although the construction phase will mean some disruption, it’s important to keep the bigger picture in mind. Once completed, the new road will significantly reduce congestion and queuing through the centre of Penwortham, especially at peak times, meaning less pollution and quicker journey times for residents.”
The City Deal will help to create more than 20,000 new private sector jobs and see over 17,000 new homes built across the area, along with new school places, open green spaces and new health provision to cater for the growing population