A preferred corridor for the new N25 route at Glenmore is expected to be chosen in the coming weeks.
Piltown municipal district councillors were told at their recent meeting that it is hoped to make the announcement before the end of March.
Senior Engineer Seamus Kavanagh said a review meeting had been held and they are still working on the final route.
The proposed 9km dual carriageway will link the New Ross bypass and Waterford bypass.
Subscribe or register today to discover more from DonegalLive.ie
Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.
Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.