A new bus hub set to be created in Blackpool town centre will cost £256,000.
Most buses will pass through the hub on Market Street, which is already home to Blackpool Transport’s information and ticket office.
It is being funded from the council’s Local Transport Plan budget.
Work is due to start next month and means part of Market Street will be closed for about 10 weeks.
Jane Cole, managing director of Blackpool Transport, said: “These changes will allow for an extra bus stop on Market Street to ease congestion in this area.
“These works will take place from Monday February 20 and the road will remain closed for approximately 10 weeks.
“During these works Market Street will be closed between West Street and Church Street.
“Affected southbound bus services will use Talbot Road and the Promenade during this time.
“Northbound services will operate turning right from the Promenade onto Church Street and then onto Corporation Street.”
Calls have been made in the past for a new bus station following the closure of the Talbot Road Bus Station.
But Coun Fred Jackson, cabinet member for highways on Blackpool Council, said a transport hub made more financial sense and would bring services together.
He said: “Although some people would like a bus station there isn’t at the moment a site that could be used even if we had the money to do it.
“It is different to the hotel proposal in that income from the hotel will repay the loan.
“To get income from a bus station depends on what you charge the buses for using the station.”
Coun Jackson said in the past Blackpool Transport had not wanted to pay to use a bus station.
He added the hub would mean there was a focus for passengers in the town centre.
Coun Jackson said: “People will know if they want a bus, that is where they will be.”
Council chiefs have approved the necessary traffic orders which will now be advertised to the public.
It is also hoped the hub will encourage more people to use public transport.
A town hall report says: “Together with improving matters for existing bus users, it is intended that this scheme will help attract more people to try public transport.
“Every person on the bus instead of driving means less congestion.
“The bus hub will complement the growing fleet of high quality Palladium brand buses carrying people across Blackpool.”