The Twin Towns bypass could be changed to take a northern route around the town.
The route for the bypass is expected to be revealed next month by Transport Infrastructure Ireland.
A previous proposal for the town’s bypass which took the N15 on a southern route past the town was turned down by An Bord Pleanála in 2009.
An Bord Pleanála at the time called for the scheme to be redesigned.
Cllr Patrick McGowan told today’s meeting of Donegal County Council that the new route is expected to be announced soon.
He was speaking as the council discussed the local area plan for Ballybofey and Stranorlar.
The Finn Valley councillor called for the plan to be postponed until the route was decided but he said he had been told that was not possible.
Cllr McGowan called for a commitment from the council's executive that the plan is revisited next year after the route is announced.
A meeting between Transport Infrastructure Ireland (TII), council officials and representatives in the county next month is expected to reveal the route.
Cllr. McGowan told the Donegal Democrat that “all the indications are” that the bypass will take a northern route around the town.
“With the imminent announcement on the preferred route option I have asked that in the event that it is going to change from the south to the north of the town - which is going to have more impact on the town - that they would commit to reviewing it immediately in 2019,” he said.
“In that event, the chief executive has agreed to revisit it. From a business point of view and for everything else, it is so important. We don’t know exactly the route but if that happens it will free up land on the southern route. This is constraining the town at the moment.
“We all agree that there is a need for a bypass and that we don't want to do anything that would interfere with route selection.”