The Cabinet has approved the business case for an outer bypass for Galway City.
The project will now be submitted to An Bord Pleanala, and if approved, will proceed to construction stage.
Transport Minister Shane Ross says the scheme will reduce traffic congestion in Galway city, and provide direct access from the new motorway to industrial parks at Ballybrit and Parkmore.
Galway East TD Séan Canney has welcomed today's Cabinet decision, which he says brings the outer city bypass a step forward to alleviate traffic congestion.
Deputy Canney told Midwest News this evening that the creation of this bypass will reduce commuting time for thousands of workers in Galway, and will improve access to University Hospital Galway and NUIG.