The dualling of the York Outer Ring Road could be staggered to allow time to find new funding, a report says.
A City of York Council report stated the project, including dualling the road between the A19 and Little Hopgrove roundabout, could still be achieved if its delivery is carefully phased.
The phasing would focus on works to junctions along the ring road, with stages scheduled to support the building of new housing developments.
The scheme has a £113m funding shortfall.
Council estimates put the cost of the outer ring road scheme, which was approved last year, at £164m compared to £51m left in the budget for the project.
Funding worth £25m from the government earmarked for the outer ring road remains under review.
Officers recommend still going ahead with dualling the outer ring road rather than stopping at improving existing roundabouts of shelving the project.
LDRS understands the council’s priority is to expand the Clifton Moor roundabout.
Works to those at Strensall, Haxby, Wigginton and Monks Cross would happen once funding becomes available.
It is estimated that the outer ring road project would allow more than 3,557 homes to be built.
Current spending on the outer ring road stands at £14m.
Station project shortfall
The report also updates councillors on the York Station Gateway project, which has a funding shortfall of £18.5m.
The completion of the current tranche of works have been delayed by a year as of January, according to the report.
It recommends seeing the Station Gateway project through to completion.
Plans for the scheme include improvements to bus and cycle infrastructure and upgrades to public spaces.
It would require confirmation that a promised £600,000 from York Station operator LNER for the fifth tranche of works still stands.
LNER did not respond to LDRS when asked whether they would stand by the funding pledge.
The report stated: “The full delivery of the projects projects is vital for driving economic growth, attracting inward investment and the delivery the agreed objectives of the council’s economic strategy..
“These projects enhance access to jobs, services, and regional transport links for our residents and businesses making York more competitive and resilient business location.
“Not progressing these schemes risks losing external funding, delaying housing delivery, and damaging relationships with key partners.”