A £2.3m scheme to improve a key junction in Northampton has been approved by the government.
The road improvements between London Road and Ransome Road will also enable the building of up to 450 new homes on the Ransome Road redevelopment site.
The junction, to be built by the county council, is being funded by the West Northamptonshire Development Corporation (WNDC).
WNDC chief executive Peter Mawson said the junction was vital for the town.
Mr Mawson said: "The government clearly recognises the importance of Northampton and has backed WNDC to invest around £2m in these vital junction improvements.
"They will lead to the transformation of a largely derelict site, which is part of a bold and exciting vision for the town centre, being led by the local authorities."
The Homes and Communities Agency (HCA) has re-submitted a planning application for the housing scheme at Ransome Road, which is due to be considered by WNDC in the autumn.
The site is part of wider plans for the Waterside area of Northampton, and the junction works will also support the regeneration of the adjacent Avon/Nunn Mills site.
Margaret Allen, director for the HCA East Midlands, said: "It is great news that the works can go ahead and we can start progressing delivery of the housing development.
"The scheme is a key part of the local authority's vision for Northampton and supports its aspirations for growth."