Radstock's town centre oak tree will be moved next week.
Bath and North East Somerset Council has revealed that work on the new road layout could start next autumn.
In preparation, the oak tree will be moved to a new site at Writhlington School.
B&NES said the road layout will tackle traffic congestion and support the regeneration of the local economy and the building of 210 new homes on the former railway land.
Council leader Paul Crossley (Lib Dem, Southdown) said: "There are clear steps that B&NES will be taking with our partners to get the regeneration of Radstock moving. We've listened closely to the community every step of the way in both the development of the road plans and the relocation of the tree.
"The improvements are part of the council's wider plan to breathe new life into one of our area's most historic market towns."
Work to remove the tree will take place between December 3 and 11 to give it the best possible chance of survival.
B&NES said the council respects the historical connection the community has with the tree, and especially the friends and family of Colin Latchem, and have worked with them to identify a suitable site for it to be relocated.
Colin's sister Karen Emery said: "The oak tree's survival and wellbeing has been my priority since the loss of my brother in 1997.
"The tree became a living tribute to Colin and is extremely precious to us all. We have worked closely with the council and its tree specialists, Norton Radstock College and Writhlington School to save the tree.
"If we want to give the tree the optimum chance of relocation and a healthy future, we need to take action now, whilst dormant for the winter.
"Whatever the future holds for Radstock, seeing the oak survive and giving it the chance to grow into the magnificent tree it was intended to become when planted will always be worth fighting for."
B&NES plans to submit a revised planning application next April including the detail of the road scheme. This will pave the way for applications for the housing and town centre development.
Subject to outline planning consent being secured, work on the road network upgrade would begin in autumn 2013.
The leader of council will also take a place on the Norton Radstock Regeneration (NRR) board.
Cate Le Grice-Mack, chairwoman of NRR, said: "Our development is an important part of the total approach to the restoration of Radstock as a busy and positive place for people to live and work.
"While the road scheme will help to move traffic more easily, we will make sure that the 48 per cent of our site earmarked for green space, walking, cycling will enable people to move more easily within the town. And just to reassure people – the railway will not be disconnected, and light rail is still an option for those who wish to see it happen."
There will be an information event in the spring prior to the outline planning consent application being submitted.
People can find out more at www.bathnes.gov.uk/regenradst ock.
Any project updates will also be issued via Twitter – follow @bathnes or search for #regenradstock.