Plans to build 130 homes on greenfield land near Poulton could be decided by inspectors.
Hollins Homes appealed against Wyre Council’s failure to make a decision on its Holts Lane scheme last month.
Following that appeal the firm submitted new plans to the authority in the hope of avoiding a showdown – a process known as double tracking
But following concerns raised over traffic generated by the scheme Wyre Council members have been advised to reject that new application.
Refusal could force the authority into a planning inquiry battle with the developer.
It is welcome news to Coun Alf Clempson, who has battled against a number of new homes schemes in the town.
He said: “Lancashire County Council has chosen to oppose this on highways grounds.
“I welcome that as this is something I have been raising concerns over for long time.
“I am glad that at long last they are taking seriously the traffic issues generated by new developments around the town.”
Lancashire County Council officials have been in talks with the developers for more than six months but remain dissatisfied with the proposals and concerned over the impact 130 houses would have on traffic in the area.
A report from County Hall said: “Lancashire County Council would ask the committee that they should issue a decision of ‘minded not to approve planning permission’.
“The developer has failed to provide sufficient information to show that the development will not have a severe impact on highway safety and highway capacity.
“The developer fails to show that all reasonable efforts have been taken to show they have maximised their efforts to deliver a sustainable development.”
In addition to traffic concerns Lancashire County Council has made clear it would need a a contributionof more than half a million pounds for 49 primary school places and and more than £350,000 for additional secondary school places in the area.
Network Rail has also raised concerns over increased use of a foot crossing close to the development site.
The crossing may be replaced by a bridge.
A decision on the scheme will be made when councillors meet today.