Construction on the Minter's Yard through road will start in 2015 thanks to new Government cash - boosting jobs and business.
The £750,000 project will take traffic from Albert Road through and beyond Minter's Yard, and has been given the green light today after £104million of funding was awarded to Kent & Medway Economic Partnership.
Leader of Dover District Council Cllr Paul Watkins said: "It's a very important project for Deal.
"It gives Deal the employment opportunities and solves traffic problems. It is part of the Government's growth package and Deal is lucky to have a package within the project in Deal."
Cllr Watkins said it is a "forward funding package" that must be delivered within a two year period. Work will start in 2015 finishing in 2017.
He said it is part of a project that will hopefully ease some of the traffic issues around Southwall Road from commercial activities and new homes. For years residents have complained about HGVs, and the prospect of extending Minter's Yard for commercial and residential reasons led to uproar among homeowners in the narrow street.
It is also hoped it will pave the way for traffic easing in the congested Golf Road and further North.
The £104million should accelerate commerce - in particular boosting the success of Discovery Park in Sandwich thanks to a new £10million parkway station at Manston.
Paul Carter, Leader of KCC and board member of the Kent & Medway Economic Partnership, said: “This is good news that the government has announced transport schemes in Kent which will help support transport infrastructure across the county.
“As we come out of recession, housing growth will accelerate and commerce will increase. I am sure the LEP and the Kent and Medway board will be pleased with this announcement.”
Other schemes in the county will reduce congestion and ease traffic black-spots including:
• A new link road in Canterbury (Sturry Road) (£5.9m)
• M20 Junction 10a , in Ashford – £19.70 million, to unlock around 11 ,000 jobs and facilitate growth throughout Ashford and East Kent.
For the full story and reaction, see the Mercury on Thursday