A consultant has been appointed to draw up a design plan for the Western Link in Ballybofey.
As part of the wider plans for a bypass around the town, it is planned to construct a link road which would service cross border traffic while also counteract any impact to trade within the town centre.
It has been agreed by all elected members at Donegal County Council to highlight the project as a top priority for funding to the Department of Transport.
Local Cllr Patrick McGowan says the route, unlike the bypass, will also allow for new development: