Sheffield Council is to bid for a share of £490 million to improve the city's congested roads.
The funding package is part of the wider National Productivity Investment Fund, which is providing £1.3 billion to improve transport links across the country.
Local authorities in other parts of the UK have already applied for their part of the money and now councils in Yorkshire and the Humber have been allocated £490 million to bid for.
A spokesperson for Sheffield Council said the authority is putting together a bid and they are currently considering how much to request.
The city's crumbling roads are already undergoing an extensive improvement programme through the 25-year Streets Ahead scheme. The deal between the council and private contractor Amey is funded with £1.2bn of central government money and £800m from the council's coffers.
However, residents recently highlighted how a number of roads in Beighton, Crookes, Ecclesfield and Gleadless appear to be cracking just months after being resurfaced.
It is understood this latest funding package is aimed more at projects that could ease congestion - such as road widening - rather than fixing cracks and pot holes.
Transport Minister Andrew Jones said: “We are investing record amounts on our roads – spending more than £23 billion on providing better journeys for motorists.
“We are also committing a further £1.3 billion up to 2020 to cut congestion and provide important upgrades to ensure our roads are fit for the future.
“This money will allow councils to go even further to improve their roads and will be targeted at areas which need it most, providing a significant boost to the UK’s economy.”
The competition will run until June 30 and councils will be provided with details of how to bid.
Councillor Bryan Lodge, Sheffield Council's cabinet member for the environment, has previously accepted that a small number of roads have 'deteriorated prematurely' due to 'soft underlying surface layers'. But he added that roads affected would be resurfaced by the end of this year.
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