Around £1m could be spent on improving transport links in Pontefract town centre.
The cash, which has come from the West Yorkshire Combined Authority, would be concentrated around the Horsefair area if the spending scheme is approved by senior councillors.
No specific plans have been put together yet about what work may take place on the street.
But a report going before Wakefield Council's Cabinet next week says that it would be geared towards cutting pollution, managing traffic and encouraging walking, cycling and the use of public transport.
The local authority's portfolio holder for transport, Coun Matthew Morley, said: "We’ll be discussing the scheme which could act as a catalyst for regenerating Pontefract town centre by improving the connection between the town centre and the castle.
"It would have a number of benefits for residents and businesses as well as encouraging visitors to come and enjoy our district."
It is likely that any work will form part of a "masterplan" the council is putting together to regenerate Pontefract.
More details on this will be released in the weeks and months to come, with the regeneration work itself expected to start during the 2020/2021 financial year.
Councillors will discuss the proposals at the Cabinet meeting, which takes place at The Civic Centre in Castleford next Tuesday.
Members of the public will be able ask questions of senior councillors afterwards.
Local Democracy Reporting Service