Work on the A5 Monaghan to Derry road could begin next year.
The long-awaited upgrades have been dogged by delays over decades.
The North's Infrastructure Minister Nichola Mallon says after "a public inquiry and the successful completion of the statutory processes, construction could commence in mid-2021".
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The new road will run from the border at Aughnacloy to outside of Derry City, bypassing major bottlenecks between the two areas.
Under the plans the current road, which is also the main road linking Dublin and Donegal, would be replaced by a dual carriageway.
Minister Mallon has also asked officials to push ahead with plans for the A4 Enniskillen southern bypass.
