Nearly £2m of funding has been agreed for the final section of the £43m Gloucester South West bypass.
The money, from the South West Regional Development Agency, means the county council will be asked to commission the last section of the road on 20 April.
Work on the final Netheridge section could start in summer with the whole road open in 2007.
Peter Bungard, executive director for environment, said: "This has been a very complex project to deliver."
He said: "The benefits of the bypass to Gloucester are very significant, both in terms of helping us deal with congestion and providing us with capacity for future development, including the docks."
The Netheridge section will connect Cole Avenue Junction to Hempsted Lane, but work will include a diversion of the Gloucester and Sharpness canal at Two Mile bend and construction of a high-level swing bridge.