East Lindsey District Council has confirmed discussions have taken place over the Crowders plan for 500 new homes in the town.
The proposed development, one of the biggest in the town’s history, has been shrouded in speculation after a recent objection from Highways officials at Lincolnshire County Council.
It is understood talks between Crowders’ representatives, the county council and ELDC are still ongoing, although no date has been set yet for the application to go before planners.
An ELDC spokesman said: “ELDC has had discussions with the county council with regard to highways matters in respect of this proposed development. These include discussions around the impact the development could have on junctions in the town.
“Highways matters will be reported to the planning committee when it considers the application. No date has yet been set.”
A campaign group is fighting the development on a number of issues, while Crowders stresses it will not make any comment during the planning process.