The Highways Agency has awarded a £7.5m design and build contract to Carillion to improve safety at the A1 Elkesley junction with Jockey Lane.
Carillion will now complete the design of the scheme, taking it through from construction to completion.
The work will involve building a two level junction on the A1 north-west of Elkesley, including a new road bridge over the A1.
Brian Gash, Project Manager at the Highways Agency for the scheme, said: “The scheme will make the A1 Elkesley junctions safer, improve journey times and ease congestion.
“I am sure that the work will be welcomed by the Elkesley Bridge Campaign and local people who have shown their support for the scheme in the past.
“We undertook public consultation to gather feedback on what local people wanted and this latest scheme will very much reflect their requirements.
“Safety is a priority for the Highways Agency and this latest scheme is testament to us delivering our commitment.”
Construction work is set to begin early in the new year and is due for completion by early 2015