Transport minister Norman Baker has given the green light to a number of road improvement measures aimed at reducing congestion in Nottingham.
Around £16.2 million will be spent on upgrading the city's ring road - a maximum of £12.8 million of which will be provided by the government - with the work expected to be completed by the summer of 2015.
According to a study conducted by satellite navigation technology provider TomTom, Nottingham is the 27th most gridlocked city in Europe and the third busiest in the UK.
The ring road is renowned for its lengthy traffic jams during peak times and with the population expected to grow in the coming years, the need for significant road improvements has become urgent.
Mr Baker said the work would not only slash congestion, but will also improve bus journey times and make the roads safer for pedestrians and cyclists.
"The £12.8 million we are putting into this scheme shows that the coalition government is serious about investing in the infrastructure the country needs to drive economic growth," he commented.