A second compulsory purchase order (CPO) for the Edge Lane West area of Liverpool has been confirmed by the Secretary of State.
The £350m scheme will widen the existing road and means the demolition of 500 homes.
Some residents have protested against the scheme and the High Court quashed the first CPO.
Those opposed to the project now have six weeks to lodge a protest against the second order with the High Court.
The first CPO made by English Partnerships for Edge Lane West was confirmed by the Secretary of State in February 2006.
It was challenged by local resident Elizabeth Pascoe in the High Court and quashed in November 2006.
'Transform area'
A second order was made for Edge Lane west in July 2007 and a public inquiry was held at the beginning of this year.
English Partnerships, the regeneration agency overseeing the project, said that almost 90% of the homes that would be affected are now either already in public ownership or are in the process of being bought.
Spokesman Eliot Lewis-Ward said: "The regeneration of the Edge Lane corridor remains of critical importance for Liverpool and the wider region.
"It will deliver significant housing, employment and environmental benefits for the community.
"We are pleased that a decision has been made that will help us to respond to the community's wishes for a comprehensive approach to transform the area."
Councillor Warren Bradley, Leader of Liverpool City Council, said: "The overwhelming majority of residents in this area have supported the plans to regenerate the Edge Lane area and they will welcome this decision wholeheartedly."
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