Most of the 350 staff will transfer back to the council to carry out day-to-day surface road works, grounds maintenance, street lighting maintenance, fleet management and maintenance.
At the same time the council has decided to maintain the flexibility to outsource large or specialist works to contractors through a framework contract.
This means Amey could have a role in highways maintenance design in the county if it makes the framework for larger specialist works.
Councillor Tony Markley, Cumbria County Council’s Cabinet member responsible for highways, said: “We have laid out the broad rationale for bringing services back in house, and that is to have more direct control and flexibility over the work our teams do.”
He added that the council would maintain the ability to contract out large jobs and specialist tasks to private sector contractors.
Stephen Munro, Business Director at Amey, said: “We’re extremely proud of the work we’ve done across the region during our seven year contract.
“We hope to leave a legacy of professional, highly skilled and experienced staff with the council to take this work forward in the future.”