Funding is being provided by the Department for Transport to boost transport links in Cheshire.
Some £15.6 million is being provided to support work on the Crewe Green Link road, which will provide transport links to Basford, an important site for the local economy.
It will involve the construction of a 1.1 km-long dual carriageway road from the existing bypass on the A500 to the A5020, passing under the Crewe-Stoke Railway.
A new bypass will also be constructed to the south-east of Crewe, aimed at easing congestion in the town by reducing traffic queues, as fewer trucks will have to negotiate town centre streets.
Transport secretary Patrick McLoughlin said: "This scheme is great news for Crewe and will support the economic growth and regeneration of the town, including the ‘All Change for Crewe’ strategy."
Work will begin immediately and the project is scheduled for completion in November 2015.