The construction of the Stranraer breakwater will go ahead after problems with a ferry company's lease were resolved, it has been claimed.
A local MP said the project could now progress without retendering
The next phase of the regeneration project had been delayed, costing Dumfries and Galloway Council £130,000.
But local MP Russell Brown said the issue had now been resolved after he pressed the parties to find a solution.
Paperwork has now been completed which will allow the project to progress without a further retendering, he said.
The MP for Dumfries and Galloway said the project had been delayed because Sea Containers had not cancelled its lease with Crown Estates over areas within Stranraer harbour which had previously been occupied by the company.
He said: "I remain concerned that the situation was allowed to reach this crisis point.
"The parties involved knew about the lease issue a year ago and yet it was left until now to resolve it, costing the council £130,000 in the process and threatening to cost more still.
"This situation should be reflected upon to ensure that if any further issues arise they are dealt with immediately."