Major roadworks for Birmingham New Road
Roadworks will be carried out on one the Black Country's busiest dual carriageways to cope with hundreds of new homes in Bilston, Coseley and Tipton.
Wolverhampton City Council has handed a £1.5 million fund in the Chancellor's budget to overhaul a junction on the Birmingham New Road, on the border with Dudley.
The money has been set aside for works at the Shaw Road junction to cut congestion, improve conditions for cyclists and pedestrians, and address road safety concerns following a series of accidents.
Work will involve filter lanes to provide more space for cars to turn, pedestrian crossings and 'bus priority'.
It is hoped the work will improve access to Bilston and Coseley and get traffic through what has become a bottleneck in rush hour.
Wolverhampton and Dudley councils will work together on the scheme which will 'unlock' new housing for six sites - Bilston Urban Village and Ward Street in Wolverhampton, land off Darkhouse Lane and Peartree Lane in Coseley, Coseley Park, and land off Bloomfield Road, Tipton.
There will be 900 homes on the 66-acre Coseley Park site, which replaces the former Coseley Eco Park plans at the Bean Road and Wellington industrial estates and Newey Business Park.
Plans were initially put forward for Coseley Eco Park in 2011 and included 200 homes, commercial and retail space.
Planning permission for the scheme was granted in 2012, but stalled after the development partner ran into commercial difficulties and the new, bigger proposal has now been unveiled.
A further 500 homes are in the pipeline for the £176m Bilston Urban Village.
Councillor Peter Bilson, Wolverhampton's deputy leader, said: "This is very welcome news and means we can now push on with these plans that were initially turned down for funding by the Department for Transport in 2013.
"This is a key pinch point on the A4123 corridor that restricts access to a number of local development sites and strategic through routes, impacting on potential jobs and growth in the local area.
"When completed, the works will make life easier for residents, commuters and businesses in Wolverhampton and Dudley."