The new 0.6 mile road link is seen as vital to unlock thousands of planned new homes along with new businesses in the north of the city and provide a less congested route from the A38.
It will create an additional route from the east of Plymouth to the north, avoiding the often heavily congested Manadon Roundabout and A386 Tavistock Road.
It will also unlock land in the north of the city for development, where 4,300 homes are planned over the next 15 years, and it will include new walking and cycling routes while improving bus connectivity from the east.
The project will take three years to complete and will link Forder Valley Road and Novorossiysk Road to William Prance Road in Derriford.
The road will have a bridge across Bircham Valley and a bigger signal junction at the Forder Valley Road and Novorossiysk Road junction, which will be moved so it can handle more traffic.
The Government is contributing £22m to the cost of the scheme.