Transport experts are now working with officials in Doncaster and Barnsley to draw up a plan that will move traffic away from villages.
The A635 is a main road that runs between Manchester and Scawsby running through Stalybridge, Saddleworth Moor, Holmfirth, Barnsley and Doncaster.
The movement comes after a high-profile campaign from residents who have complained about heavy congestion, air pollution and road safety.
“After 30 years on the drawing board, I’m delighted that I’ve moved the Hickleton/Marr bypass a step closer to being realised,” Dan said.
“I’ve written to John Cridland from Transport for the North to highlight the importance of the proposals. I will be making the case with the government and my team will soon be starting on the business case with our local authority partners.
“I believe it’s critical that, working with partners in South Yorkshire and across the north, we find a solution to deliver this important link road.
“A bypass would be great news for residents of these villages, for businesses in the area, and for all of us who want to see improvements to South Yorkshire’s transport network.
“While there is still a lot of work to do, this is undoubtedly an important day for all those who have campaigned on this issue for decades.”
Leader of Barnsley Council, Sir Steve Houghton, said: “We’re already seeing the benefits of opening up areas of the Dearne Valley, including improved roads into our borough and the building of new homes and business parks for businesses to relocate and thrive.
“However, we do recognise the high impact volumes of traffic are having on residents living in Hickleton and the surrounding areas.
“We’re working closely with our partners across South Yorkshire and Transport for the North to help Doncaster in their efforts to address the issue, while at the same time looking at the future of the Dearne Valley area so we can get the best outcomes for our residents and businesses.”