A new £13.5 million roundabout on the M181 near Scunthorpe will be built as part of the 6,000 home Lincolnshire Lakes project.
Councillors in North Lincolnshire gave the go-ahead to the new junction which will be built to access the B1450 Burringham Road from the motorway.
It comes as part of the £1.2 billion Lincolnshire Lakes scheme which aims to create six new villages near the town in a waterside setting.
Applicants Highways England said the proposal will help to improve access to Scunthorpe, create new jobs and cut journey times to major cities like Leeds and Sheffield.
The project comes as the government granted £8.6 million worth of funding towards the junction back in 2016.
But some councillors raised concerns that the B1450 in Burringham was already not safe.
Councillor Mick Grant said the road will be “trouble” and will cause problems.
“We all want the junction, but it has issues around it,” he said.
“The road is going to be trouble and I do not see any promises it will be made any better.”
Objections were also lodged by both Burringham and Ashby Parklands Parish Councils.
However, Councillor John Davison said the application was “good news” and will prevent a “rat run” through the village.
Councillor Rob Waltham, leader of North Lincolnshire Council, said: “This approval is an important step towards improving this critical piece of infrastructure.
“The development of this area is a vital component in improving the North Lincolnshire economy.
“The conditions attached to the approval will make some important provision to reduce the impact on the Ashby Parkland area of the town.
“This is an important aspect about how the area is developed with consideration for existing communities.”
Meanwhile, works for flood defences and the first lake of the Lincolnshire Lakes project began in late 2017.
It is hoped the new roundabout will also relieve traffic on Berkley Circle at the junction of Scotter Road, Doncaster Road and Kingsway.
North Lincolnshire Council recently launched a review into the junction in an effort to tackle safety issues.
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