The long-awaited Shifnal Integrated Transport Scheme, now known as the Shifnal Town Centre Improvement/Enhancement Project, has been in the works since 2013.
Costing £2.7 million, the scheme was set to begin on July 26, but will now get underway "in late August" following delays.
The project is expected to be largely completed by 2022, taking roughly six months to complete.
It aims to address the mounting burden placed on the town's infrastructure by significant housing development in recent years.
Funded by Community Infrastructure Levy (CIL) contributions from nearby developments, it includes plans to ease congestion and slow vehicles down as they approach the junction joining Aston Street, Victoria Road, Bradford Street and Market Place.
It will also include realigning and increasing capacity at key junctions, resurfacing of roads, landscaping and tree planting, pavement improvements and new street furniture.
Denise Reynolds, Shifnal town clerk, said: "The long awaited Shifnal Town Centre Enhancement Project is in the final stages of contractual arrangements and is expected to start delivery in late August 2021.
"Representatives of Shropshire Council, Shifnal Town Council and the contracted company will be meeting for a pre-start briefing early next week.
"Subsequently residents, business owners and the general public will be informed of the detailed delivery plans and dates for specific areas of work.
"Everyone involved is aware of the potential disruption to the centre during the works and will ensure that communication is clearly distributed before any works are undertaken.
"Please keep an eye out for notices to be dropped at your doorstep, on public noticeboards and posts on council social media and websites.
"I am sure that we are all looking forward to a newly-developed street scene and boost to the local businesses and area."
The former head of highways for Shropshire Council, Councillor Steve Davenport, said the "excellent" scheme would "uplift" the town, as well as helping traffic flow through the town centre.
Meanwhile, Shifnal South & Cosford Councillor Ed Bird said he hoped the project, which includes the widening of pavements, would make it safer for pedestrians.
Councillor Bird also said he hoped the scheme would provide an economic boost.