West Sussex County Council said both local county councillor Hilary Flynn and the parish council identified the reduced limit as a 'priority to improve safety'.
It comes nearly nine years after the idea was first suggested at a 'packed meeting' at Felpham Memorial Village Hall in April 2010.
A county council spokesman said: "The county council is formally advertising proposals which would mean only Upper Bognor Road, Middleton Road, Felpham Way, Flansham Lane and Flansham Park will remain 30mph: all other public roads in the village would become 20mph. "If the scheme goes ahead, signs will be installed on all roads leading off the main ones to alert people to the change and a small number of roundels will be painted on road surfaces for the same reason."In Summerley Lane, two pairs of speed cushions (mini speed humps) will be installed to help reduce traffic speeds. according to the county council. Its statement added: "A small section of double yellow line lines will be introduced in Felpham Way, at the junction of the service road with Summerley Lane, where a new roundabout is currently being built. "Private roads in the village largely have signs showing reduced speed limits already and these will be unaffected by the proposals. "The scheme will be advertised from today (Thursday, February 7) for four weeks, allowing residents and road users to comment. If the proposals are approved it is hoped the works would be completed in 2019/20."
The spokesman said a village-wide consultation at the end of 2016 showed 'general support for the scheme', which it says will cost an estimated £50,000 from developer contributions.