Work to improve a busy motorway junction near Gloucester is set to start at Easter 2009.
The aim is to avoid congestion with extra traffic generated by new housing estates near junction 12 of the M5.
Developers of the Gloucester Quays and Kingsway village project will fund part of the upgrade - traffic lights at the top of the northbound exit slip road.
Further funding will be sought from other developers for the full works, which include widening of lanes.
It is hoped some of the money will come from the developers of the Hunts Grove housing scheme, which is currently being scrutinised at a public enquiry.
Planning permission for the estate near Quedgeley had already been granted by Stroud District Council.
But two local Labour MPs - Gloucester's Parmjit Dhanda and Stroud's David Drew - intervened after objections by a number of residents.
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