Communities Secretary Hazel Blears has given permission to Lancashire County Council to build the long-awaited £105m Heysham to M6 link road.
The decision from the Secretary of State was granted following a lengthy planning and public inquiry process and means that Lancashire County Council can now make progress on securing funding for the road.
Cllr Matthew Tomlinson, cabinet member for environment and transportation, said: "This rigorous independent assessment of the scheme has concluded that the road is worthwhile and should be constructed. I hope now that everyone will accept this decision and that we can progress the scheme through the rest of the legal processes.
"I would like to thank all the local people, including politicians, residents and business people, who appeared at the inquiry and spoke in favour of the scheme. It's another stage passed in what has proved to be a marathon."
The start date for the main highway works is January 2010 with an expected completion date of late 2012.
The proposed route connects the already built length of the A683 Heysham to M6 Link, at its junction with the A589 Morecambe Road near Torrisholme, to a fully remodelled junction 34 on the M6 motorway near Halton.
The route is a 4.8km-long two-lane dual carriageway with intermediate junctions and a combined footway/cycleway along its full length. The scheme includes alterations to the local road network including existing junctions.
More than 20 major structures will need to be built including bridges over the West Coast Mainline railway, Lancaster Canal and the River Lune.