Work is to begin on a bus interchange outside Cambridge railway station by the end of 2010, at a cost of £1.5m.
Cambridgeshire County Council said the area would provide a "vital public transport hub for the city and surrounding villages".
The plan, which has been approved by councillors, includes nine new shelters, real-time bus information and public information stands.
Construction is expected to be finished in spring 2011.
People who are dropped off at the station by car will be able to use what the council have called "kiss and ride" bays.
Cycle parking spaces will also be increased by 150.
Roy Pegram, cabinet member for growth, infrastructure and strategic planning, said: "The high quality bus interchange will provide a long-awaited, seamless link to the station area.
"Bus passengers will benefit significantly from better and less crowded stops, with up-to-date, real-time bus information."