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Council officials say they have identified a necessary extension from Coonagh Roundabout on the N18 northwards to the Knockalisheen Road.
The proposed scheme will also provide a link road to Moyross and an upgrade of the Knockalisheen Road.
A council spokesman said: "The need for the scheme has been further identified as an important aspect of the current Moyross regeneration programme which has recommended that a distributor road from Coonagh Roundabout northwards including an access road to the Moyross area be progressed as a matter of urgency."
The proposed Coonagh/Knockalisheen Distributor Road is approximately 3km in length.
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Work on the Knockalisheen Road upgrade will involve improvement the road to a suitable urban standard and include a widening to accommodate footpaths and cycle lanes.
Upgrade works on the Knockalisheen Road would stretch over 1.7km in length.
"An initial study area was identified and a constraints study was undertaken which identified all factors to be considered in the development of the scheme," said the spokesman.
"From identification of the constraints a number of route options for the Coonagh to Knockalisheen Distributor Road were developed," he added.
He said the preferred route was then chosen based on a number of environmental and engineering factors.
Existing development, land use and planning; engineering and topography; utilities; geology and hydrogeology; socio economic data; flora, fauna and fisheries; archaeology and cultural heritage; and landscape and visual aspects.
Views expressed through a public consultation process will be considered during the further development of the preliminary design of the scheme, and during the advancement of the statutory planning procedures.
This could involve the preparation of an Environmental Impact Statement, which would be submitted to An Bord Pleanala for determination, Limerick council said.
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