The White Rose Way scheme is designed to end congestion between junction three of the M18 and Doncaster.
The road widening job will also release planning restrictions on 220,000 sq m of developable land, which could deliver over 2,700 new jobs and allow 2,500 new homes to be built.
Dave Lowther, Balfour Beatty regional civil engineering’s project manager for the scheme, said: “We are delighted to be working alongside Doncaster Council to deliver what will be an important scheme for the town and the wider region.“
The first phase of works will see a new carriageway built between the Potteric Carr and Lady Bank roundabouts and a new bridge over the East Coast Mainline.
Last month the European Regional Development Fund granted the necessary funding for this phase to proceed.
These works should be complete by February 2013.
Subject to funding from the Department for Transport and further ERDF funding, the second phase should start in April next year.
This will involve the construction of new dual carriageway from Potteric Carr to Junction 3 of the M18 and signalised junctions replacing the roundabouts at Potteric Carr and Lady Bank.
All the works should be complete by March 2013.