Derby City Council has secured £27m of government funding to complete a major city transport project.
The council put the request into the government in August to complete the Inner Ring Road and build the King Street Link.
The £36m Connecting Derby project has already improved junctions on St Alkmund's Way, paving and lighting.
All planning approvals and listed building consents are in place so work will begin as soon as possible.
The money will also be used to make changes to the direction of traffic in the Friar Gate area and the city centre.
City Councillor Lucy Care said the work would help people who walked, cycled and used public transport in the city.
"I am delighted and relieved to finally get the money approved," said Ms Care.
"This is completing the Inner Ring Road but it's going to be a very different from that which was started in the 1970s.
"It's not flyovers dividing Derby and the city centre, it's going to be full of crossing points and be much friendlier for pedestrians, cyclists and buses."
It is hoped the work will be completed by Christmas.