Carillion has been chosen as the preferred bidder to deliver the £96 million Lincoln Eastern Bypass scheme.
If approved, the contractor will build a 7.5km road to link the A158 Wragby Road roundabout to the A15 at Bracebridge Heath.
The three-year project aims to cut congestion in Lincoln city centre as well as unlocking housing and economic developments around the city.
Diggers arrived on-site in May for initial works to build a 130-metre track required to access part of the site. Archaeologists have also been appointed to examine areas previously identified as having possible cultural heritage remains in them.
Councillors will be asked to approve Carillion as the projects contractor at a meeting on Tuesday, 01 November. If successful, the firm will be handed the deal for the main works once the Department for Transport has formally confirmed £50m of funding provisionally granted in November 2011, which is expected to happen in December.
In addition, Network Rail will also be awarded a separate contract to allow access under the Lincoln to Spalding Railway line embankment, resulting in a closure of the railway in October 2017. Access through the embankment is planned to be gained by April 2018.
Cllr Richard Davies said the Bypass project is expected to reduce traffic levels by around 25% on Broadgate.
"That will mean less congestion, better air quality and reduced journey times," he said.
"It will also pave the way for the housing and economic developments that are vital for the county's future prosperity.
"I'm delighted we've reached this important milestone and look forward to the main works starting in the new year."
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