The junction project will see the existing grade separated roundabout upgraded to a three level interchange.
This will involve placing the A19 in an open cut underpass and replacing the existing embankment and adjacent bridges across the roundabout.
Work, on the project which was designed by WSP in a way to reduce the initial anticipated cost of the project by 25%, will start in 2016.
Roads Minister Andrew Jones said: “Through schemes like these we are building the Northern Powerhouse and creating opportunities for hardworking people across Britain.
Highways England assistant project manager Darlene Procter said: “This scheme will improve journey times on the A19 by reducing congestion and improving safety for the thousands of drivers that use this junction each day.
“The A19 is a vital strategic link providing access to the Tyne Tunnel Trading Estate, Silverlink Retail Park, Cobalt Business Park and South East Northumberland.”
The scheme will also improve safety for pedestrians and cyclists by providing two new shared use bridges over the A1058 slip roads.