Modernisation and upgrade works will now start this month. The scheme extends 11km from Portmore Roundabout on the outskirts of Barnstaple to Filleigh Cutting to the north of South Molton.
Works include widening of three sections of the Link Road, covering 7.5km, to create three traffic lanes, two in one direction and one in the other direction.
The major project, being led by Devon County Council, will boost the local economy by supporting plans for 6,700 new homes in the region.
The council is now expected to formally announce the winning contractor for the project this week, which it has kept under wraps.
Councillor Andrea Davis, Devon County Council Cabinet Member for Infrastructure, Development and Waste, said: “The upgrade of this road is the biggest transport investment in north Devon for a generation.
“It will help unlock the true potential of the local economy in northern Devon, and with the ongoing impact of the coronavirus pandemic, that’s vital at this time.”
“We’ve been working tirelessly on this project for a number of years so it’s great to see that effort rewarded with this government funding. We’ll now be looking to get work started as soon as we can.”