Key work to build a new roundabout on the A358 at Bishops Lydeard is anticipated to start in September.
The scheme will be delivered by developer Taylor Wimpey as part of a legal agreement linked to the construction of new homes in the village.
Permission for a development on Station Road was granted by the District Council in 2011 and included a Section 106 Legal Agreement with the developer.
In 2014, the County Council entered into a separate legal agreement (Section 278) with the developer to enable the highway works to go ahead.
A series of positive meetings have taken place between Taylor Wimpey and the County Council since then, and it has now been agreed that a final design for this will be approved within the next few weeks.
The design works have had to evolve since discussions first began and the new roundabout plans now include the reconstruction of the underpass.
Once approval is granted, Taylor Wimpey will complete the tender process and appoint a contractor to construct the roundabout and associated works with a target start date of September.
Cllr David Fothergill, Somerset County Council’s Cabinet Member for Highways said: “These will be complex works on a major road so we need to ensure everything has been carefully considered before construction begins.
“We’re all keen to see a roundabout in place as quickly as possible and I’m pleased we are now working towards a start date. What is more, by starting in September we’ll be avoiding the school holidays and the peak time for tourists in the area and this should also help keep disruption to local businesses and the West Somerset Railway to a minimum.”
A Taylor Wimpey spokesperson said: “We have been in extensive discussions with Somerset County Council regarding the design of the highway works and we are now confident that an agreement is imminent.
“We remain committed to delivering these works and once approval is granted, we can complete the tender process for the works and appoint a contractor with the aim of starting construction in September.”