A full and final bid will now be submitted to the Department for Transport showing detailed expenditure plans.
If there are no legal challenges to the consent, Carillion will start construction of the £30m scheme in the spring.
The project is the second phase of the A1 to South East Northumberland link road and will take around 18 months to build.
The 3.8km single carriageway bypass will link the A1 to the A197 in South East Northumberland, reduce traffic levels in Morpeth town centre and open up opportunities for development at key sites.
A new at-grade roundabout is to be created at the intersection of the bypass with the existing A192 at Lane End.
A new standard grade separated junction with slip roads and a dumbbell roundabout arrangement, to provide ‘all movements’ access to the A1 trunk road and a link to St. Leonard’s Lane.
The Department for Transport is to provide £21m of funding towards building the bypass – officially named the South East Northumberland Strategic Link Road. Northumberland County Council will provide the remainder of the funding.