An extra £32m has been secured to build a link road to the south of Carlisle, bringing the total government investment in the project to £134m.
The new route will link with the city's northern relief road and will create a bypass surrounding the city. The plans are linked to the St Cuthberts Garden Village, a planned development of 10,000 houses to the south of the city.
The additional money covers a shortfall in the project, and now that is secured developers hope that the road will be completed by 2024.
The funding agreement is expected to be approved at a cabinet meeting tomorrow by Cumbria County Council.