Transport for the North has included Liverpool City Council’s scheme as one of four major projects within a £700m programme of works identified as critical to growth in the north of England.
The major upgrade to the Rocket Junction would see the existing Queens Drive Flyover demolished and replaced with a new roundabout and dual-lane underpass.
Space created by removing the structure would present an opportunity to build a landmark gateway building.
The Rocket Junction is the busiest in Liverpool.
Physical signs of weakness in the Queens Drive Viaduct prompted investigations last year.
Engineers from Amey found the quality of construction using concrete and steel was poor, with tendons and ducts corroded and signs of structural distress including cracking over some supports.
They estimated that strengthening the structures was not feasible while the cost of replacing them could be up to £60m.
The Department for Transport is being called on to stump up £92m towards the cost with Liverpool City Council contributing the remainder via its £500m Better Roads programme.
If approved, it is anticipated works for the scheme would begin in 2023.
Mayor of Liverpool Joe Anderson said: “The Rocket is not fit for purpose – it can no longer cope with the traffic coming into the city via the M62 and as welcome to Liverpool is a hugely negative experience.
“As we all know, the junction is flawed as the motorway should have come all the way to the edge of the city centre but stopped at the Queens Drive ring road instead.”