It is part of nearly £50million of ongoing works on the A511 corridor.
The road will link Bardon Road with new housing developments at Grange Road. It would also see the creation of a fourth arm of the roundabout on the A511.
A planning application for the road is being prepared, but the county council is first seeking the views of local residents and businesses on the detail and design of the work.
A consultation on the scheme begins today and will run until October 31. There will also be a chance to feedback on the plans once the application is submitted.
The scheme will also include lit footpaths and cycle paths, meaning that local residents can be less reliant on their cars when travelling between the new housing developments and Coalville town centre. It will also feature an underpass to allow people to safely cross the railway line.
The bulk of the cost of the wider scheme – around £42m - is expected to be met from the Department for Transport’s Major Road Network Fund, with the county council continuing to progress its bid.
Cllr Ozzy O’Shea, cabinet member for highways and transport said: “Leicestershire is growing – and we’re focused on creating jobs and boosting skills, but we need the right infrastructure in place to manage that growth. These improvements to the road network around Ashby and Coalville are much needed.
“The A511 has suffered from congestion for many years and this scheme will not only improve traffic flow, but will also have environmental benefits as it will lead to a reduction in exhaust emissions and improve air quality.
“The scheme will provide us with the opportunity to improve public transport and promote walking and cycling initiatives, which will contribute towards our commitment to make our county cleaner and greener.”