The money has been set aside for works at the A4123 Birmingham New Road/Shaw Road junction to reduce traffic congestion, improve conditions for cyclists and pedestrians, and address road safety concerns following several accidents at this location.
The scheme will improve access to urban centres and key new development sites by providing additional traffic capacity at what has become a bottleneck.
Wolverhampton City Council will be working in partnership with Dudley Metropolitan Borough Council to deliver the project which will help unlock the development of housing on 6 sites - Bilston Urban Village and Ward Street in Wolverhampton, land off Darkhouse Lane and Peartree Lane in Coseley, Coseley Eco Park, and land off Bloomfield Road, Tipton.
The works will begin before the end of March 2016, with a schedule yet to be confirmed.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets, said: "This is very welcome news and means we can now push on with these plans that were initially turned down for funding by the Department for Transport in 2013.
"This is a key pinch point on the A4123 corridor that restricts access to a number of local development sites and strategic through routes, impacting on potential jobs and growth in the local area.
"When completed, the works will make life easier for residents, commuters and businesses in Wolverhampton and Dudley."
The improvements will provide new filter lanes from Birmingham New Road, new and improved pedestrian crossing facilities and new cycle infrastructure, as well as bus priority measures.
It also fits in with the 2 local authorities' economic and transportation priorities to link the surrounding communities with the retail and employment sectors by foot and cycle.
- released: Monday 13 July, 2015