Government 'not asking' for return of £33m for road
Norfolk County Council withdrew its planning application for the Norwich Western Link in January, because of concerns about its impact on rare bats.
The Conservative-run authority has spent £56m on the project near Norwich, which included the government funds. Opposition groups warned this could leave it with a large hole in its finances.
Graham Plant, cabinet member for transport, said the council had now had "really constructive" discussions with the Department for Transport (DfT), which has been approached for comment by the BBC.
The 3.9-mile (6.2km) Norwich Western Link would connect the Northern Distributor Road to the A47 west of the city, and had been in the works for years.
"There is a mutual commitment to continue to work together to tackle the growing transport and traffic problems to the west of Norwich, which are projected to worsen with planned housing and employment growth in and around the city," said Plant.
"As a result of these discussions, DfT have confirmed that they will not ask for the £33m they have already committed to the project to be returned."
The council said the Western Link would have cut traffic congestion, reduce journey times and improve air quality in communities.
But new Natural England rules protecting rare barbastelle bats meant a licence was unlikely to be granted.
Meanwhile, millions of pounds had already been spent on the project, including buying land, as well as staff and consultants' costs.
Plant said discussions with the DfT continued and the council hoped "to be able to provide a further update on the outcome of these discussions shortly, including regarding the future of the project and the next steps".
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Talks ongoing over road cancelled due to bat fears
Council grilled over millions spent on link road
Wildlife charities welcome road plan withdrawal
Link road plans withdrawn due to concerns on bats
Department for Transport
Norfolk County Council
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