Government transport bosses have given the green light to a £65m scheme to improve part of the M4.
Work on junction 11 is expected to begin in April 2007
The cash will pay for two new junctions and more bus and cycle routes around the motorway south of Reading, and will pave the way for a park and ride site.
Reading council leaders, who say junction 11 is the town's "most important transport gateway," have campaigned for funding for five years.
It is expected that work will begin in April 2007.
Councillor John Howarth, of Reading Borough Council, said: "Business leaders have been clear that the junction 11 project is vital to Reading's economic future.
"It means that an essential link to Heathrow is improved and we have the chance of another very effective park and ride site."
A new junction will be built around the existing junction 11, motorway bridges will be converted into priority routes for buses, bikes and pedestrians and a new junction south of the M4 at Mereoak will be created.
The junction 11 proposals were the subject of a public inquiry, which has yet to be concluded. A decision is due to be announced later this summer.
However, the council has said it "expects a positive outcome".