A planning application has been submitted to build the first phase of the Barton-upon-Humber link road.
The plans funded by Government cash would see a link road built to connect Barrow Road, A1077 and Caistor Road.
Junction improvements would be made and a cycle path and pedestrian footway added, making travel more convenient and slashing carbon emissions.
Cllr Rob Waltham, leader, North Lincolnshire Council, said: “We have spent a lot of time across several rounds of consultation listening to residents in Barton to understand how they would like to see their town develop.
“As with all major developments having the proper infrastructure in place as a community continues to grow is absolutely essential and we’re confident that is what this link road delivers – taking HGV traffic out of the town centre and making it more convenient for residents to get around, while considering our impact on the environment.”
Last year Barton received almost £20m of Government Levelling-Up funding to improve travel and boost connectivity.
As well as funding the link road, the cash has already seen improvements made to the town’s passenger interchange.
People can have their say on the link road plans on the North Lincolnshire Council website.