Works to demolish Rhubarb Bridge and increase road capacity at Junction 18 of the A47/A15 are included in the latest Peterborough City Council budget proposals.
If approved by councillors in March, £2.5 million of capital investment would be allocated for 2017/18 and a further £3 million in 2018/19 for the project.
The junction is at the roundabout separating Morrison's in Lincoln Road and Bourges Boulevard. It also leads onto the Soke Parkway.
Improvement works are also being pencilled in for Broadway, Midgate and Northminster as part of the council's freshening up of the city centre.
There are also proposals to spent £1.5 million over five years to continue resurfacing the parkways.
The entire costs of the three capital schemes would be £10.5 million over four years. This would see the council pay borrowing costs of £84,000 in 2017/18, rising to £713,000 in 2021/22.