A final bid for £16m has been put together by Somerset County Council for a road project in Taunton.
The Northern Inner Distributor Road (NIDR) is one of 10 schemes in the country which the government may fund.
County councillor David Hall said the road would ease congestion and "deliver real value for money".
The NIDR will link Staplegrove Road in the west of Taunton to Priory Avenue in the east of the town and the road has been estimated to cost £21m.
The county council aims to pay for the remaining balance through grant funding from the Department of Transport and developers who will benefit from the scheme.
The go-ahead for the project was made by the Transport Secretary Phillip Hammond on 26 October 2010 subject to this final bid.
A decision is expected to be made by the end of January 2011.