The upgrade will include a section of three-lane motorway
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Approximately £140m is to be spent improving the A80 Glasgow to Stirling trunk road from Stepps to Haggs.
The upgrade to the road, one of the most heavily used in Scotland, will include a 1.6-mile three-lane section between the M73 and Auchenkilns.
Construction is expected to start in 2008 and be completed by 2011.
Transport Minister Tavish Scott said the upgrade would improve road safety, reduce congestion and improve journey times.
He said: "The A80 forms an essential part of the trunk road network between central Scotland and the north east.
"When completed this new road will be of benefit to both local communities and the Scottish economy."
There was considerable local objection to the 11-mile plan, which also includes a five-mile stretch of two-lane carriageway between Stepps and Mollinsburn, and the introduction of hard shoulders.
However, a public local inquiry in October 2005 ruled that it should go ahead as there would be significant benefits in terms of reducing traffic congestion.
Business concerns
CBI Scotland expressed concerns about the capacity of the new road.
Director Iain McMillan said: "Transport is the lifeblood of our economy and the need for this crucial artery is beyond doubt.
"Whilst we are very pleased that the upgrade is finally going ahead, we do have some concerns about the capacity of the new motorway.
"The executive's own consultants, who carried out the A80 transport corridor study, recommended that a significant part of the route should have an additional lane.
"This has not been accepted by ministers and the fear is this could cause congestion problems in future."
The Conservatives said the project was long overdue and urged the Scottish Executive to give it priority
Central region MSP Margaret Mitchell said: "With such a plethora of new transport projects in the pipeline, I fear resources may be spread so thinly that dates are missed."