Bradford Chamber of Commerce and Industry has told the Council to think bold if Bradford is ever to become a world-class city.
The Chamber has told senior Council officers that the city needs to 'bite the bullet' to help future economic development.
The move came after the Chamber was contacted by consultants undertaking a review of transport options for the western sector of the city.
The review aims to reduce city centre traffic and complete the ring road.
Plans put forward include building a tunnel directly underneath the university and college from the south of the city.
Other options included rerouting the ring road via existing roads and carrying out work at junctions and other key areas.
The Chamber says the city should think long and hard about any 'compromise options' that could mean missing out on future prosperity.
It says the tunnel option is the one plan which would create a better economy for the district.
John Pennington, president of the chamber, said: "Traffic flows and parking are vital components of city centre regeneration.
"Easy access combined with convenient parking will enable traders to take advantage of additional customers. Several options have been considered and the Chamber feels if Bradford really wants to compete on the international stage, then it needs a first class transport infrastructure - one that would clearly say Bradford means business."
The Chamber's choice would cost more than the other options, but it says less expensive schemes could jeopardise future development.
Derek O'Hearne, chair of the Chamber's local affairs committee, said: "Committee members felt a top-class infrastructure is long overdue and while things would probably be inconvenient during the period of the work, the benefits would outweigh this long-term.
A decision is expected to be made later this year.
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