A new business case is being prepared to explain why a south Devon bypass put on hold by the coalition government should be built.
The £130m Kingskerswell scheme was approved by the last Labour government, but stopped by the Department for Transport (DfT) in a spending review.
Devon County Council and Torbay Council said the case was to show that the road would benefit the area.
Their submission was due be considered by the DfT in the new year, they said.
'Value for money'
The councils said they had met with local business leaders and politicians to outline the case for investing in the bypass plan, known as the South Devon Link Road.
They said if it was built it would bring, economic, traffic and environmental benefits.
Councillor Stuart Hughes, Devon County Council's cabinet member for highways and transportation, said supporters were "convinced that this scheme shows exceptional value for money".
He said: "The project will enhance the entire region, bringing more visitors and making journey times shorter and more reliable for businesses and communities using the route."
The elected mayor of Torbay, Nick Bye, added: "Our business community and local residents have been tremendous in expressing their support for the project, so we need to make sure that government is aware of the depth of support."
Plans for the controversial bypass, which have been ongoing for more than 50 years, have split the community.
Those in favour claimed it was vital to the economy. Those against said it would destroy the village of Kingskerswell.