The contract, estimated at £200m, will improve access to and from junction 10 of the M5 motorway.
The project will open the area for more house-building and is also expected to improve traffic flow.
Following a bid to Homes England’s Housing Infrastructure Fund (HIF) in March 2019, Gloucestershire County Council has secured £249m for the proposed scheme.
The funding will be used to improve access to and from the motorway northbound and southbound to a new link road into Cheltenham.
Currently M5 Junction 10 only has slip roads to and from the north (north facing). This puts extra pressure on already congested local roads, particularly on Junction 11, which provides access to and from Cheltenham on the A40.
The proposals would see slip roads go in both directions, providing improved access to west and north west Cheltenham.
The project timetable shows that contract award is expected by the end of July 2022, enabling construction to start in December 2023 and complete by November 2025.