The project is being delivered through Highways England’s six-year £8.7bn Regional Delivery Partnership framework.
The scheme involves construction of a new three-mile dual carriageway bypass to alleviate the heavily congested A585 between Windy Harbour and Skippool.
The project will improve the safety of pedestrians, equestrians and cyclists around the existing A585, as well as reducing congestion and supporting the economic growth potential in Wyre and Fylde.
Work will start in the spring for completion in summer 2023.
Joe Incutti, Kier acting group managing director for Highways, said: “We are currently engaging with the local supply chain to utilise existing capability, in parallel with working to enhance skills across the region.”