Traffic between Warwick and Stratford could be improved with the construction of a £76 million bypass for the A46 at Longbridge Island due to start next year.
The Department for Transport has announced plans to create a 1.8mile dual carriageway allowing the road to bypass the roundabout at junction 15 of the M40.
All non-motorway traffic must currently cross the roundabout, creating delays on both the A46 and M40 and causing many drivers to take diversions to avoid the junction.
Transport minister Tom Harris said: “The A46 is a vital north-south route for the region, connecting Coventry with Stratford and linking towns across Warwickshire to the M40, which in turn provides a vital link to the South East.
“By cutting congestion and improving road safety this 70m government investment will bring benefits to regional businesses and both to local drivers and those on longer journeys.”
Work is due to begin in spring 2008, with construction expected to take until autumn 2010.