Traffic on Scalby Road is being affected after part of the road collapsed overnight near Fieldstead Crescent.
Temporary traffic lights are in operation as contractors work to rectify the issue.
As the temporary lights are close to existing lights at the Throxenby Lane/Green Lane junction, delays are likely.
Resurfacing works were taking place overnight when a large void was discovered under the road.
A spokesman for North Yorkshire County Council explained after removing the top part of the tarmac, a vehicle then punched a hole in road surface revealed "quite a large void under the rigid layers of tarmac."
He added: "This is causing major problems this morning.
"I would think traffic issues will run into tomorrow as we have to dig down and find the source of the problem then fill the hole back up before we replace the tarmac."
Drivers are advised to avoid the area where possible.