ITV Cymru Wales' Political Editor Adrian Masters says that the Wales Office has been engaged with the Treasury for some time over plans for an M4 relief road and other upgrades.
He says that an announcement is hoped for in 'a couple of months.'
In March 2012 the Welsh Government launched a consultation on plans that could ease congestion on the M4 around Newport.
Speaking at the time, Transport Minister Carl Sargeant said the plans would aim to "improve efficiency and productivity and in turn make us more competitive."
The plans included improvements to public transport as well as road improvements including:
- M4 Relief Road south of Newport over the Gwent Levels
- Improve A48 Southern Distribution road
- Widening of M4, adding additional tunnel at Brynglas
The consultation ended in July 2012.
Plans to grant permission to build a new M4 relief road near Newport has been criticised as "poor value for money." Sustrans Cymru, who promote sustrainable travel, say the scheme which is expected to be announced by the Chancellor would cost £830million over 15 years.
They said that a "more cost effective way to reduce congestion would be to invest in shifting these journeys to public transport."
They argue that the money should be used to encouraging people to walk, cycle and use public transport to ease congestion.
It will become the second toll road in Britain - following the M6 in Staffordshire - and will run between junctions 23 and 29 of the M4 to relieve congestion on the outskirts of Newport.
The newspaper reports that the Chancellor will agree to guarantee loans for the building of the M4 relief road, but the devolved Welsh government will meet the cost - expected to be around £830 million.
The prospect of a new toll road relieving pressure on the M4 has reportedly been welcomed by motoring groups.
A spokesman for the AA, while welcoming a relief road, said that charging a toll on the road would “double the injury” for drivers as many would already have paid £6.20 to cross the Severn Bridge.
The government is reportedly planning to agree to a new toll road on the M4 in South Wales, but this is part of a multibillion-pound scheme of road upgrades in the UK.
According to the Times, the other upgrades include:
- A1 between Newcastle and Berwick-Upon-Tweed to be converted to a dual carriageway
- Widening of the A47 in Norfolk
- A303 to be turned into a continuous dual-carriageway