Leicestershire County Council is set to spend more than �750,000 to improve a traffic bottleneck in Melton Mowbray. State-of-the-art traffic signals and pedestrian crossings will be installed on Norman Way, with work also planned to widen the road.
Work will not begin on the junction with Scalford Road until early 2007 and drivers will have to wait until 2008 for the Thorpe End side to start.
It is thought the project will take until 2009 to be fully completed.
David Parsons, leader of the county council, said: "Melton badly needs a bypass and we are preparing the strongest case we can for funding before lobbying the Regional Assembly for an early start.
"We cannot ignore these traffic problems until then so are already planning work to improve the capacity of the main junctions on Norman Way."