West Sussex County Council has taken two major steps towards building the A284 Lyminster Bypass.
It has secured £3 million in funding from the Coast to Capital Local Enterprise Partnership (LEP) towards the scheme.
The County Council also appointed Jackson Civil Engineering Group Ltd to design and build the new road over the next two years.
The proposed bypass will make it quicker, easier, and less congested to travel between Littlehampton and the A27.
County Council Cabinet Member for Highways and Transport, John O’Brien, said: “Now the full funding package is in place we can see this bypass become a reality.
“It is something we have been pushing for over many years.
“Improved transport links between Arundel and Littlehampton will encourage new housing and new jobs.
“It will make the existing village quieter and reduce queues at the level crossing in Wick.”
The County Council has been considering some points raised during consultations on the planning application.
It has withdrawn the current application to make sure some elements can be re-worked.
A new application will be submitted once the amendments to the designs have been completed.
West Sussex County Council’s Interim Director for Highways and Transport, Lucy Monie, said: “Having carefully considered the views of both objectors and supporters of the scheme, we have decided to withdraw the planning application for the A284 Lyminster Bypass.
“This will let us make some minor amendments through a new application.
“The new application will deal with those issues to make sure the scheme secures the widest possible support.
“We are listening and responding to local opinion, and this will help reduce the risk of delays later in the process.”
Submitting the new planning application will not significantly affect the costs, benefits or timetable for the scheme.
What is the Lyminster bypass?
The proposed A284 Lyminster bypass is split in two parts.
West Sussex County Council is responsible for building the northern part of the new road, between Crossbush (south of the A27) and Toddington Nurseries.
The southern half, which will run from near Toddington Lane to the A259 Worthing Road, will be delivered by private developers.
The road will improve access to Littlehampton by reducing delays to road traffic associated with the level crossing at Wick.
The existing A284 Lyminster Road will become quieter as through traffic and heavy goods vehicles use the bypass.
The scheme also provides the additional road capacity needed to support building new homes in the area.