Work on the guided bus route is due to start in early 2009
An £86m guided bus route spanning the Bedfordshire towns of Luton and Dunstable has received conditional approval from the government.
When finished the route will cover just over seven miles and stretch from Houghton Regis to Luton Airport.
Transport Minister Rosie Winterton has confirmed funds of £78m towards the scheme and said Luton Borough Council could now tender for construction bids.
Work on the route, designed to ease congestion, is due to begin next year.
"The government is committed to investing in transport and to easing congestion in out towns and cities," Ms Winterton said.
"This scheme will bring considerable benefits for travellers within south Bedfordshire.
"The busway will connect Luton and Luton Parkway railway stations and Luton Airport.
"This will improve public transport links and encourage greater integration between services, as well as facilitate the significant new development and regeneration which is going into the town."