Southwark's regeneration boss says that the long-awaited deal between the council, Transport for London and the Greater London Authority over the future of the Elephant & Castle's northern roundabout and tube station could be just a couple of months away.
Regeneration director Steve Platts was speaking at a meeting of the borough's overview and scrutiny committee last week.
During a discussion on risks to the successful delivery of regeneration schemes in the borough, he cited the example of the lack of agreement over funding for upgrades to the transport interchange at the Elephant & Castle as "an absolute risk to the project".
"We recognise that at the moment we don't have a fully-funded transport solution," Mr Platts told councillors.
"We are working with the GLA and TfL on getting a fully-funded transport solution.
"Those conversations are going reasonably well ... and I would hope to have an agreed funding package for the transport infrastructure by around Christmas or the New Year."
Earlier this year credible rumours that Mayor of London Boris Johnson would agree to fund the £200 million cost of remodelling the northern roundabout at Elephant & Castle and rebuilding the Northern line tube station with escalators to replace the current lifts proved unfounded.
In the meantime Mr Johnson has signalled that road safety improvements at the junction could begin next year in advance of more substantial changes.
"TfL's Better Junctions Review programme is reviewing the Elephant and Castle northern roundabout as a matter of priority," said the Mayor.
"Initial improvements are to be implemented during 2013/14, once public consultation has taken place.
"Major multi-million pound development at and around this junction is linked to regeneration activities in the area and TfL continues to work with Southwark Council to achieve this in the medium to long term."
For the latest local news and events direct to your inbox every Monday, you need our weekly email newsletter SE1 Direct.
7,000+ locals read it every week. Can you afford to miss out?
Read the latest issue before signing up