Instead, they will continue to travel along the existing Princes Highway after Roads and Maritime Services confirmed the interchange is not in the plans.

The Yallah interchange includes a roundabout on either side of the bypass.

The western roundabout would be used by northbound traffic exiting the bypass, while the one to the east would lead on a bypass on ramp for southbound traffic.

READ MORE: Dapto could be cut off from APR Bypass

Initially, the future of the Yallah Interchange was not to be known until construction company Fulton Hogan completed the Albion Park Rail Bypass plans – which was expected to be early next year.

However, Roads and Maritime Services’ senior project manager Adrian Rouse confirmed on Tuesday that those plans won’t include the interchange.

Mr Rouse said the contractor was asked to develop a plan including the western roundabout but the cost was too high when weighed up against any benefits.

The roundabout on the eastern side was not considered, he said, because it was the RMS view it was not needed before the Tallawarra housing development was completed.

Also, suggestions of a jail in Dapto and the possibility of other residential estates meant there was uncertainty about the developments in the area.

“It’s not appropriate to put infrastructure in now when we don't have certainty about what’s going in.” he said.

While there will be a Dapto off ramp from the bypass for northbound drivers those heading south will continue to travel along the Princes Highway.

Mr Rouse said highway traffic will be much more “free flowing” once the bypass is opened

“People are struggling to imagine that the highway will function much better once the bypass goes in,” Mr Rouse said.

“It won’t be as uncomfortable they think it will be.”

RMS would look at changing the phasing of traffic lights to reflect the reduction in vehicle numbers.