"The link road would reduce traffic and congestion through Thornton, Netherton, Bootle, Seaforth and Crosby, while improving motorway access to Southport and Formby."
Council leader Tony Robertson added: "This news will be welcomed by so many residents in many different parts of Sefton.
"It is the result of many years' campaigning and testament to the over-whelming support for a relief road."
Work will now concentrate on working out an exact route for the bypass.
A previous dual carriageway idea was rejected at a public inquiry 10 years ago.
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