A new state-of-the-art bus station is set to be built in Accrington. Plans for the scheme are to be revived after the leadership of Hyndburn council and Lancashire county council said the project was a priority.
A bid to fund the scheme is to be submitted to the government in September.
The news has been welcomed by traders who said the town was in desperate need of a new bus station.
Transport bosses halted work on the controversial £50m Pennine Reach scheme last year after the government carried out a spending review of all major transport schemes in the country.
It would have included ‘state-of-the-art’ buses, bus stops with live information, higher frequency services, bus priority in congested areas and at traffic signals, and a ‘smart card’ ticketing system.
But following the completion of the review, council bosses said the scheme was still high up on their agenda.
The former Kwik Save car park, Crawshaw Street, has been suggested as the site for a new station.
Council leader Miles Parkinson told a meeting of the council’s cabinet: "This is a priority for Hyndburn council and the county council is aware of our position.
"There was previously much consultation on this issue and stakeholders came up with the site of the former Kwik Save car park, which is the location where this modelling is being done. That would then free up the land on Peel Street. There were previously plans to have a modern town square on that site, but funding for that is no longer available, so in the medium term it would be a short-stay car park. We could use the extra space to develop the market, along the lines perhaps of other towns, like Bury and Skipton."
Sarah Brankin, of Church Street News, said: "We have heard a lot about moving the bus station over the years, but nothing has ever come to fruition.
"We need an updated bus station, but it doesn’t need to be moved out of the town centre as it is ideal for the Market Hall, the Arcade and the Arndale, not to mention the streets off it, like Church Street and Warner Street.
"At the moment, the station is old and tired and could do with a revamp."
Mark Ellis, senior branch manager at Peters jewellery shop on Blackburn Road, said: "A new bus station would be welcome to Accrington, it just depends on where it is placed."
Brian Hodgson, owner of the Victoriana tea rooms, Abbey Street, said: "I know it was mooted a few years ago to have it at the bottom of Cross Street and that was the best place for it, I feel, rather than anywhere else. The town does need a new one as the current one is a mess, with buses stopping all over the place."
Tim Ashton, cabinet member for highways and transport at county hall, said they were invited to make a ‘best and final’ bid for funding to be with the government by September.
He said: "I am personally committed to creating a new bus station in Accrington and it will be a boost to the economy in the town. We realise that it is a priority."
l Council bosses have also made the reinstatement of the Todmorden Curve a top priority, after the project cleared a major hurdle.
Network Rail chiefs have concluded there are no engineering reasons why the 500m link, which would connect the Burnley and Manchester rail lines and cut journey times by 40 minutes, cannot be restored. It has not been used since the 1960s.
It is top of county’s rail wish list of seven possible schemes and they must now submit cash bids and a business case to the government.
Trains connecting Hyndburn to the city could be running in two years if cash is found. Commuters currently change at Hebden Bridge, Blackburn or Preston, or use the Witch Way bus service, all taking more than an hour. Estimates place the cost at around £8m.