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A tunnel under the existing road at Glen of the Downs is being considered as an option for upgrading the N11/M11.
The scheme could take up to 10 years to implement, and funding for construction has not been secured at this stage.
Under initial proposals to develop the N11/M11 two corridors had been considered that would have run close to Delgany village.
Transport Infrastructure Ireland announced last week that all of the routes except for the cyan option to the west of the Glen of the Downs have now been ruled out.
Engineers working on the project are also still considering a tunnel under the Glen of the Downs, the red route.
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Kerry is to receive almost â¬28 million in funding for national roads.
Transport Infrastructure Ireland’s budget for 2021 has allocated â¬26.8 million for road improvements in Kerry, while a second tranche of funding worth just over â¬1 million will go towards road maintenance.
Minister for Education and Kerry TD Norma Foley is welcoming the announcement, saying it will go a long way to improving and maintaining the road network that is so vital to Kerry business and tourism.
The allocation of â¬28 million is an increase of nearly â¬3 million on 2020âs funding.
The Cathaoirleach of Kerry County Council, Councillor Patrick Connor-Scarteen, says the allocation will ensure greater connectivity, reduce travel times and, most importantly, make the roads safer.