The Department for Transport will pay £700,000 for a major revamp of a notorious junction of the A1 at Wansford.
Work on the junction with the A47 is aimed at improving safety and will be complete by early next year.
It will see a two-lane exit from the A1 on to the eastbound A47 and part-time traffic lights installed.
The work is part of the Governments “pinch point programme” aimed at improving traffic congestion and safety, with regular tailbacks of traffic from the slip road back on to the A1.
North West Cambridgeshire MP Shailesh Vara said: “This is excellent news and I am delighted that the Government has been able to find the money to ease the congestion on this vital local route.”
A Highways Agency spokesman said: “The solution will allow for a two-lane exit onto the A47 eastbound carriageway from the A1 southbound exit slip road. Part time signals will be in place on the roundabout of the A47 and A1 southbound exit slip road.
“These measures will reduce the amount of traffic queuing on the A1 southbound exit and onto the A1 southbound mainline.
“The scheme will support growth has the potential to help facilitate the delivery of aproximately 5,000 jobs and 3,000 homes within a 10km radias of the site by 2020.”