It has been in development since 2013, but work will at last begin in Shifnal next year after the project was backed by councillors at a meeting yesterday.
It aims to address mounting concerns from the community over the pressure placed on the town’s road network by significant housing development in recent years.
The £2.7 million scheme will be funded entirely by money given by housing developers through the community infrastructure levy (CIL) and ‘section 106’ agreements.
Councillor Steve Davenport, portfolio holder for highways, thanked Shifnal Town Council and the town’s unitary councillors Kevin Turley and Ed Bird for their support throughout the “long saga”.
Councillor Bird said: “I welcome this much-needed investment into Shifnal. I believe this project will improve the town centre.
“The section 106 money will be used to improve the junction at Aston Street and traffic flow through the town will also be calmed.
“Shifnal has been subject to new house building in recent years and there is a need for infrastructure to be improved there.”
The scheme was unanimously supported by councillors.
The work planned has been scaled back from initial plans put forward in 2015 after it was accepted that there would not be enough funding to cover the estimated £3.5 to £4 million cost.
Council leader Peter Nutting said: “Shifnal is a lovely town and I think these improvements will help it even more.
“It has had quite a bit of development and there is a lot of money in the CIL fund to help pay for all this.
“It has been a difficult process but we have got there in the end.”
The project aims to ease congestion and reduce vehicle speeds approaching the junction joining Aston Street, Victoria Road, Bradford Street and Market Place.
The Victoria Road traffic lights will be replaced with a zebra crossing, and a second pedestrian crossing will be created where Market Place meets Victoria Road.
There will be footpath and highway improvements between south of Church Street on the A464 to the Bradford Street/Shrewsbury Road junction, and additional landscaping and public seating areas will also be included.
The project in its current form was agreed by the town council in October this year and supported by Shropshire Council’s cabinet at a meeting last week.