A developer has been asked to rethink its plans to close a main route into Kinghorn for six months.
Lovell Homes initially said a section of the B923 would be closed from early August, meaning there would be no through road.
But the company was forced to back down after Fife Council said no agreement had been made.
And the council has asked Lovell to come up with another solution, which would keep the route open.
Sandy Dall, from the council’s roads department, said: “We’ve been approached by the developer but we haven’t agreed any road closure, indeed we haven’t had a formal application for a closure.
“Of course sometimes it’s unavoidable, but in this case we’ve asked Lovell Homes if they can revisit their design to remove the need for a road closure.”
Despite the talks, the closure could still go ahead, with Lovell maintaining that the safety of the public and workers must be safeguarded.
Local residents fear the move would result in traffic congestion in Kinghorn and Burntisland, and adversely affect businesses along the route.
Lovell initially released a statement stating the closure was “by far the safest option” and would go ahead in early August, with residents informed when dates were finalised.
The developer, which is building 133 homes near Kinghorn Loch, later amended its position.
Adam Forrest, regional operations director for Lovell, said: “With clear obligations as principal designer under Construction (Design and Management) Regulations 2015, ensuring the safety of local people and our staff during the construction at Lochside Grange, Kinghorn, is Lovell’s primary concern.
“We are currently in discussions with Fife Council to identify a suitable access solution that minimises disruption to local residents while construction work is ongoing.
“With a project of this nature, a certain level of disruption is unfortunately unavoidable.
“At the same time, we are confident that the long-term regeneration of the area and introduction of traffic calming measures and reduced speed limits will improve safety and have a positive effect on the surrounding communities and businesses that far outweighs any short term disruption the works may cause.
“We are also committed to ensuring the local community is kept fully informed throughout the process of identifying and implementing a suitable site access solution.”
Roy Mackie, deputy provost of the Royal Burgh of Kinghorn Community Council, said: “This is a step forward as far as I’m concerned.
“They were trying to sell it to us that there was no other option.”