Council officials say the 750-thousand euro for the Killarney-Farranfore bypass will be enough to totally complete the next phase of the long-awaited project.
Councillors were told at today's Killarney Municipal District meeting that the funding, announced by the TII yesterday, would finalise a preferred route.
Councillors today welcomed Transport Infrastructure Ireland's funding announcement, which, they were assured will address all remaining design issues.
A confirmed route would free residents and landowners, along the three other possible routes, from limbo - once again allowing them to make plans for their properties.
Cathaoirleach Niall Kelleher says the uncertainty is "nearly as big a problem as the lack of the road".
Officials from Kerry County Council's Roads Department could not give a date for the completion of Phase Two, but the Transport Department says it will be before the end of this year.