Work will involve the construction of eight kilometres of new dual carriageway between Balmedie and Tipperty.
Transport Minister Keith Brown said: “The A90 is an important strategic route that carries traffic north of Aberdeen up to Fraserburgh. The local community have been pressing for the section between Balmedie and Tipperty to be dualled for a number of years.
“This scheme when completed will result in improved and more reliable journey times and improved safety for anyone using the A90 north of Aberdeen.”
The green light for the scheme followed an inquiry into the project. Brown rejected the inquiry’s call to redesign elements of the new route.
Brown said: “Having given careful consideration to the Reporter’s findings and reasoning, I have decided not to accept all his recommendations.
“I have therefore decided on the grounds of improving road safety and providing increased accessibility for local communities and the north east in general, the Orders for the dualling of the A90 between Balmedie and Tipperty should be made.”
Detailed plans for the work will now be drawn-up as a construction timetable is finalised.