The Darlington Eastern Transport Corridor (DETC) will connect the town's Haughton Road and the A66.

It is designed to cut congestion on some of the town's busiest routes and open up potential new development and employment land in the area.

The council's cabinet is being asked to approve the release of funding, which could allow work to begin in 2007.

'Significant impact'

The government is putting �12m towards the scheme, while Darlington Borough Council is to contribute a further �460,000.

The 1.8-mile (2.9km) single-carriageway road will run along the route of the old Stockton-Darlington track bed.

Haughton Road, Yarm Road and McMullen Road are expected to benefit from reduced volumes of traffic.

Nick Wallis, Darlington Council's cabinet member for highways and transport, said: "If approved by cabinet, this will be yet another important step forward in this exciting project, which will have a significant impact in tackling congestion on some of Darlington's key routes."