A Greater Preston Transport Network could be set up across Preston and South Ribble to encourage people to desert their cars in favour of buses.
The plan, launched under the Europe-wide Civitas initiative, will see the creation of a London Underground style map, showing bus stops and car sharing clubs, while buses will be branded to create an identity for the network.
Seven bio-diesel electric buses could be introduced in a couple of years to operate in Preston city centre.
The junctions of Fishergate with Chapel Street, Ringway with Friargate, will be redesigned and in Leyland pedestrian crossing improvements will be to Hough Lane.
Lancashire County Council has received £1.6million from the European Union to promote the initiative, and has put £3.3m of its own money in.
Stuart Wrigley, LCC director of strategic planning and transport, said: "Civitas places Preston at the forefront of green transport strategies in Europe."
He also hopes a freight forum to co-ordinate deliveries in the city centre can be set up and an integrated control centre to provide passengers with up-to-the-minute travel information.
The aim is to restrict traffic growth to five per cent, reduce car use by five per cent and increase bus and non-motorised transport by 25 per cent.
There are also targets for a 20 per cent reduction in fossil fuels, and a 10 per cent reduction in energy consumption.
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