The first stage in the biggest development seen in King's Lynn for generations could begin as early as next year.
But elsewhere fewer homes than expected will need to be built in West Norfolk to meet future demand.
Land between the A10 and A47 at West Winch has been earmarked for up to 4,000 new properties.
A planning application is due to be submitted next year for a new access road between the two A roads.
Alan Gomm, West Norfolk council's planning policy manager, said: "We need that site to be developed for the future of King's Lynn. We also need a road through the site."
Mr Gomm said the £60m road would also provide "extra highway capacity" around the area where the congested A10 and A47 meet at the Hardwick Roundabout.
An application has been made to central government for £50m towards the cost of building it, with the remainder being met by the developers who take on the site.
The so-called A10/railway corridor between Lynn and Downham Market has been designated a growth area.
But a new draft local plan, which will go out to public consultation if councillors approve it next week, says 539 homes a year will be needed to meet government targets, instead of the 700 required by the last local plan, which was passed in 2016. That means 2,415 fewer properties will need to be built.
New sites in Terrington and Marham have been earmarked for development. Mr Gomm said the Terrington site would bring a former nursery back into use, while the Marham allocation would help support the growth of businesses expanding on the RAF base where the F-35 Lightning stealth bomber force is based.
But sites in Watlington, Burnham Market, Clenchwarton, Docking, East Rudham, Emneth, Marshland St James, Middleton, Southery, Stoke Ferry, Tilney St Lawrence, Walpole St Andrew and West Walton will not now be needed.
Councils look at data including population projections to work out how they can meet the government's housing target of 300,000 new homes a year.
"Over the last three years, the government has been fixated on housing figures," said Mr Gomm. "They've been working out how to work out how many houses are needed."
He added the previous figure of 700 homes a year was arrived at using "a slightly different methodology".
"I'm more than happy to see the figure go down to be honest," he said. "It's easier to deliver from our point of view."
Some of the £25m Lynn will be receiving in town deal funding will help to kick start a riverside regeneration area stretching from South Quay to Southgates, where it is hoped 170 new homes will be built.
Richard Blunt, West Norfolk council's cabinet member for development, said brownfield sites and derelict areas would be cleared to make them less costly to develop.
"On the the town deal side you need to look at investment in the infrastructure to enable the development, making sure we supply the infrastructure to enable growth," he said. "The town deal is a building block for the regeneration of that area."
The former Sommerfield and Thomas Warehouse, on the South Quay, is among the areas earmarked for redevelopment.
The draft local plan will go out to public consultation if agreed by full council on Thursday, July 8. Councils must review their local plans every five years to ensure they are up to date, and people must be consulted each time before the document is sent to be approved by an independent planning inspector.
"This is a really crucial stage and we would urge anyone with any views on the development of the area over the next 15 years, to take a look at the review of the local plan, and make the their comments," said Mr Blunt.
"If it is found to be sound, it will be the blueprint against which all planning applications for the area will be determined over the next 15 years.
"We want people to look at the plan and give us their views. There's a lot of work relating to the environment and climate change, not jut sites, so look at some of the policies."
The documents will be available on the consultation portal on the borough council's planning pages, and there will be interactive maps to assist people reviewing the document.
* All this week we are putting a special focus on the future of King's Lynn.
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