The N22 Killarney Farranfore road scheme is progressing to stage two, which involves route selection.
This scheme aims to ease traffic congestion in Killarney and shorten journey times on the N22 between Cork and Tralee.
Chief Executive of Kerry County Council, Moira Murrell gave an update on the project at the council's monthly meeting.
She said Transport Infrastructure Ireland has approved the concept and feasibility report for the scheme and work is now progressing on stage two.