The A428 corridor between St Neots and Cambridge could be in line for £9million of improvements, it was revealed on Monday.
Government officials have asked the Greater Cambridge Greater Peterborough Local Enterprise Partnership (LEP) to work with Cambridgeshire County Council to write a business case for improvements to the road as part of a new Growth Deal.
In Cambridgeshire, the Growth Deal, an initiative which will see five years of funding for LEPs across the country for business and infrastructure investment, has included funding for a number of road projects as well as inviting a bid for £9m to invest in improvements to the heavily congested road.
Adrian Cannard, who submitted the LEP's bid for the first round of funding, said he was working with the South East Midlands LEP, Cambridgeshire County Council and the Highways Agency for improvements to the A428 after it was highlighted as one of the key priorities by businesses.
He told The Hunts Post: "We have been asked to work with the county council to submit a full business case for A428 improvements. We will be working on this bid for the next few months to submit for the next round of funding, which for this has been provisionally allocated £9m.
"The road is one of our key priorities and we are working with colleagues from South East Midlands as they also view the Cambridge to St Neots corridor as a priority."
Mr Cannard added: "Caxton Gibbet is a main issue as there is a problem with congestion, especially at peak hours. We don't know the exact plans for the improvements as it's still early in the process."
He said that he was still working with the Highways Agency to deliver an upgraded A428 between Caxton Gibbett and St Neots, which is included in CCC's long term transport strategy.
Councillor Jason Ablewhite, executive leader of Huntingdonshire District Council, said: "It's a very good day for Huntingdonshire with the announcement of the Growth Deal.
"We are very pleased to secure three out of four bids for funding especially the St Neots to Cambridge improvements which are very welcome indeed."