Lancashire County Council and Preston Council are inviting tenders for the second stage of the Fishergate central gateway project, with works from Lune Street to Lancaster Lane planned.
The Fishergate scheme aims to improve the main gateways into the city, including the route from Preston railway station to Lune Street, part of Corporation Street, and Ringway to the Friargate crossing.
The first phase of works is now complete, and saw improvements to the railway station and Corporation Street and the relocation of bus stops from outside the Fishergate Shopping Centre to the railway station bridge.
The second phase of the gateway project will focus on highway improvements, with a contract value of £2.5m.
The Fishergate central gateway project is funded by £1.38m from the European Regional Development Fund and £2m from Lancashire County Council. The project was also awarded £6m earlier this year as part of the Lancashire Growth Deal.
Cllr Peter Rankin of Preston Council, said: "We are working closely with the county council on city centre initiatives through a joint collaboration board and it is great news for Preston that the Fishergate project has received further funding. It is a great step forward for the city, complementing the work we have started with city deal. When it is complete, the city centre will be much more attractive for investors, for shoppers and other visitors to Preston."
The deadline for receipt of tenders is 10 October.