Waltham Forest plans to build a new cycle superhighway on Lea Bridge Road and a "Dutch-style" roundabout at Whipps Cross.
The council also intends to create cycle-friendly low-traffic neighbourhoods.
One of the first two "Quietway" routes - direct and continuous routes on quiet back streets - will also run from Bloomsbury to Walthamstow.
Councillor Clyde Loakes, Deputy Leader and Cabinet Member for Environment, Waltham Forest, said:
“We worked really hard to look at what we could do to improve the borough for cyclists and put forward some really quite radical plans.
"This huge injection of funding will mean we can reshape Waltham Forest for those that already cycle and those that have told us they want to cycle more. It will make a significant difference to the quality of life of our residents and others who cycle in Waltham Forest.”
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