Newgate Lane South, which will connect Newgate Lane to the Peel Common Roundabout was given the final seal of approval by Councillor Robert Humby, the executive member for transport on Hampshire County Council at a meeting in Winchester.
The 1.5km long, 7.3m wide road will take twelve months to be built and is set to be open for use in the summer of 2018.
It is hoped that the new road will effectively remove traffic heading to Gosport from the existing alignment of Newgate Lane, which usually carries up to 25,000 vehicles a day.
Councillor Chris Wood, who represents Fareham Crofton and Stubbington on the county council and Fareham Borough Council respectively, said: ‘I am delighted to see approval given to this vitally-needed road.
‘It will mean reduced queues and congestions for those coming into Gosport and hopefully residents of Newgate Lane will be able to get out and about more easily as a result of this new road.
‘The sooner we can get it done and built then the better it will be for them.’