The announcement to offer the deal was made by Chancellor Jeremy Hunt as part of today's Autumn Statement.
If given approval, the proposed deal will transfer new money and powers from central government to a newly created Combined County Authority.
For the past six months, leaders from Lancashire County Council, Blackburn with Darwen Council and Blackpool Council have been working together to progress a devolution deal for the area.
The proposed deal would give local leaders extra powers to tackle key priorities such as better public transport, boosting economic prosperity and improving employment and skills.
It would also give Lancashire a stronger voice on the regional and national stage, ensuring the county does not miss out on vital funding and opportunities.
The intention is to ensure Lancashire is able to become the very best place possible to live, work, visit, study and invest.
Importantly, while a new Combined County Authority would be created, the deal would not require a change to the established county, borough or district councils across the area, and there would be no requirement for an elected mayor, nor the power to precept over and above the normal Council Tax ask.
Secretary of State for Levelling Up, Housing and Communities Michael Gove MP said:
Councillor Phillippa Williamson, Leader of Lancashire County Council, said:
Councillor Phil Riley, Leader of Blackburn with Darwen Council, said:
Councillor Lynn Williams, Leader of Blackpool Council, said:
The deal proposal will now be discussed by members of each constituent council at a series of council meetings. If all the councils agree, a public consultation will then be held so residents and businesses can have their say on the deal proposal.
Each council will then consider the findings of the consultation before the final proposal is submitted to government for parliamentary approval next year.
More information on the Lancashire devolution deal