The proposals consist of upgrading the A1 to three lanes between the A692 Lobley Hill Junction and Dunston Junction.

It is expected that the Lobley Hill Improvement scheme can be built within the existing highways boundary which means that no additional land would be required.

A contractor is due to be appointed next spring to start in the summer of 2014.

Chancellor George Osborne committed to upgrading the A1 all the way between London and Gateshead in the 2012 Autumn Statement.

A total of £378m has been set aside for projects to ease congestion for commuters and improve connections for businesses.

A number of small scale options were assessed to ease congestion on the A1 around Gateshead and of these, the Lobley Hill to Dunston Improvement scheme was considered to offer the best value for money.

Highways Agency project manager, Lynne Biddles, said: “Once complete this scheme will increase capacity, reduce congestion for people using the A1 Western Bypass, and support any planned development in this area.”