Roads Service have announced a £6m spend on buying land for the second phase of Millennium Way.
However, the Department of Regional Development said the actual construction of the new road would be dependant on future available funding.
Transport Minister Danny Kennedy confirmed the purchase of the land required to complete the extension to the Millennium Way Proposal at a cost of around £6million.
The announcement refers to the publication of the Making of the Vesting Order which will pave the way for the provision of the new road.
Minister Kennedy said: “I am pleased to announce this exciting proposed scheme which involves the construction of 430metres of new road between Malcolm Road to Gilford Road in Lurgan. The junction between Millennium Way and Malcolm Road junction will become a signalised crossroads and the existing small roundabout will be upgraded where the scheme connects to Gilford Road.
“The new road, which also provides for cyclists and pedestrians, will result in a reduction in congestion within the area and reduce traffic flows through the local residential areas.”
TransportNI officials will continue to liaise with affected landowners and businesses along the route to reduce the impact of the new road wherever possible.
The timescale for the start of construction is dependent on the availability of funding.