A new £4.8m road scheme will improve Broadfield Road junction and widen the road on the A61 corridor to provide an extra lane for traffic along Broadfield Road and London Road.
It will help relieve congestion and improve journey times, especially for motorists driving into the city centre during the morning rush hour.
The Department for Transport is giving Sheffield £3.3m and the council will provide match funding of £1.4m through its highways maintenance PFI works under the Streets Ahead contract.
Coun Jack Scott, Cabinet Member for Transport, said: “How nice to be able to make an investment in the city rather than taking money out due to cuts.
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“This will be a major asset, it’s about making the junction more efficient rather than just increasing road capacity. This area needs some attention, it’s not just about great roads but building more successful communities.”
The council says the scheme takes advantage of the adjacent Streets Ahead highways maintenance works and links in with local “Better Bus” improvement schemes nearby.
The timescale for construction is to start on-site no later than March 2019 with completion by March 2020.