Norfolk County Council is to stop further spending and pause the planning process for the 3.9-mile road, after officials acknowledged it has little chance of happening after opposition from government advisor Natural England.
The Conservative-run council has called on the government to intervene to allow the road, which would connect the A47 to the Northern Distributor Road west of Norwich, to go ahead.
But they acknowledged they might be forced to consider a Plan B.
While leaders are reluctant to entertain the possibility of a road they made a priority in 2016 and have spent almost £50m on not happening, they are ready to press the government to make the £213m originally earmarked for the scheme to provide “alternatives”.
The fate of the road was plunged into doubt after Natural England objected because the road would threaten a population of protected barbastelle bats.
Natural England also signalled it would be unlikely to be awarded the environmental licence needed to disturb the bats so the scheme could be built.
The guidelines over the mammals changed following new research and County Hall officers said that was a “significant impediment” to the project getting planning permission.
Leaders hope that by asking transport secretary Louise Haigh and environment secretary Steve Reed to get involved it will overcome the concerns.
Graham Plant, Norfolk County Council cabinet member for highways, transport and infrastructure, said: “We want to deliver important infrastructure improvements, but despite our best efforts, we find ourselves in an impossible position.
“We are now caught between government policies and systems, and need them to intervene to find a good solution.
“The government has suggested it is committed to enabling growth and to removing barriers in our planning system. We are therefore hopeful they will help us reach a positive outcome.”
The government is in the midst of a spending review for transport projects, and prime minister Sir Keir Starmer said on Friday a decision on the Western Link will be made next year.
But, if the road in its current form cannot go ahead, the council wants “compensation” of at least the £213m the Department for Transport announced in 2023.
The council would use that for alternatives, although Mr Plant said he “didn’t want to go down that route” and added: “We don’t want to speculate on what we might do.”
Pressed on why the council had not developed a plan B, he said the authority had been spending millions on a plan they had believed would succeed, only for the “last minute” intervention by Natural England to threaten it.
The Conservative-controlled cabinet will decide next month to reduce and pause activity on the road, including the planning process.
The council submitted plans for the road, which would connect the Northern Distributor Road to the A47 near Honingham, to its own planning department in the summer.
Conservative leaders say the road, including a viaduct over the Wensum Valley, is vital to cut congestion, stop rat-running and boost the economy.
The last estimate for the cost of the road at £274m was given a year ago and officers have yet to provide a revised figure.
County Hall, which needs to make £45m of cuts and savings next year, previously said it would borrow money to plug a funding gap between the £213m committed by the government and the final cost.
Brian Watkins, leader of the council’s Liberal Democrat group, said: “This Conservative administration has continually ducked responsibility for failing to deliver upon the Western Link.
“We have urged for alternatives to be explored on the occasion that the original plan is not given the go ahead, only to be met with bluster and excuses.”
Steve Morphew, leader of the Labour group at County Hall, said: “For three years Labour has urged County Hall Conservatives to develop a Plan B, contingency for huge financial risks and to start negotiating an exit strategy.
“This has become a road to ruin. Those cabinet members who irresponsibly took us there must stand aside.
“No government would commit to turning over hundreds of millions without a Plan B.”