Work on a new 1,600 home development on derelict wasteland in Portsmouth may start next year with the construction of a new motorway junction.
The city council wants to build a new junction off the M275 before the Tipner project starts to avoid construction traffic through residential streets.
Apart from new homes, of which 30% will be affordable, the council also wants to build a park-and-ride site.
It said construction could start in late 2010 if planning consent is given.
The Tipner development could bring 1,500 jobs and "will create an attractive modern gateway to the city", the council said.
It is working with the South East England Development Agency (SEEDA) on the plans for the new junction and they are hoping to submit a planning application later this year.
The government is expected to decide next summer if it will provide £25m for it. The council and its partners are providing £5m.
David Maxted, the council's project director for Tipner, said: "There's still a long way to go on Tipner, which has always been a very complex, long-term project.
"But things are coming together.
"The plan for a new junction off the M275 is taking shape, and we're confident of getting funding for it.
"Getting approval and funding for new transport links is crucial to the regeneration of Tipner."