Funding from Keighley's regeneration fund is in place for the town's proposed new £3.37 million bus station.
Ambitious plans to demolish the existing station and replace it with a covered concourse were revealed last month.
Funding will come as a mix of government and council tax money via Bradford council, West Yorkshire Passenger Transport Authority and the Single Regeneration Budget (SRB).
SRB bosses last week approved their £250,000 share, to be spent over the next two years from Keighley's £18.7 million SRB pot.
The new station will feature covered concourse and a row of airport-style gates with waiting seats in each bay.
There will also be a caf, toilets, a shop, CCTV cameras and talking information points, and possibly a performance area.
The layout of the complex will enable moving buses to keep away from pedestrians and discourage car drivers from using the station as a rat run.
The project has already been welcomed by Keighley and District Travel, the town's bus operators, as well as Keighley Town Centre Management Group.
But management group member David Petyt, a leading town centre trader, is dismayed that the station will not be directly linked to the Airedale shopping centre.
Once planning permission has been given for the project, work will last around six months with buses using temporary stops in nearby streets.
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