Lancashire County Council has agreed funding for improvements to the Burnley road network, as part of the Pioneer Place leisure and retail development.
The £3.2m funding from the county council would be used for road infrastructure and related improvements needed for the project in the Curzon Street area.
The investment was agreed yesterday by the county council's Cabinet.
Pioneer Place is a £26m. development, which would establish a high-quality vibrant leisure and restaurant offer in the town centre, making a significant contribution to its vitality and viability, as well as supporting a broader ambition to deliver economic and housing growth across the borough.
County Coun. Geoff Driver CBE, leader of Lancashire County Council, said: "The Pioneer Place scheme will bring significant regeneration to an area of the town, further reinforcing the previous work that's already happening.
"We’re pleased to be working with Burnley Borough Council to bring this project together.
"New jobs are already being created and the economy is increasing here. It's important that we do what we can to develop the road network in order to support and continue this growth.
"Along with plans by UCLan to develop their university facilities, Pioneer Place would be an important next phase in the ongoing transformation of the town."
The multi-million pound plans for the Pioneer Place leisure development would see Reel Cinema relocate there, restaurants, a public plaza, shops and a 125-space car park.
The proposals are part of the Burnley masterplan, which could deliver 1,070 new jobs, £100m Gross Value Added per annum, £1.05m in new Business Rates and 583 new homes.
The Town Centre and Canalside Masterplan has been prepared by Burnley Borough Council, in partnership with the county council, the University of Central Lancashire and Burnley FC.
Coun. Mark Townsend, Leader of Burnley Borough Council, said: “Pioneer Place is a major part of our vision for Burnley town centre.
“Burnley is bucking the trend and recent investments have already seen increases in the number of visitors to the town. Pioneer Place will build on this, by diversifying our offer and attracting even more visitors to our town centre. This will further boost the local economy and benefit local businesses.
"We want a town centre that everyone is proud of and I know our residents are looking forward to this development. This is an exciting time for Burnley as we continue to transform the town.
“I would like to thank the County Council for their significant support which is a further milestone in the delivery of this scheme.”