The proposed scheme consists of a new viaduct structure to cross the River Dyfi upstream of the existing bridge near Machynlleth.
The current crossing is narrow and regularly closed by floods or damage by vehicles causing long diversion routes and disruption.
It will improve capacity and resilience on the A487, improving safety and journey times on the road which is an important link between North and South Wales.
Transport Minister Edwina Hart said: “The A487 is an important part of the Welsh north-south and east-west trunk road network.
“However the current Dyfi Bridge creates a pinch-point on this important road. This new bridge will greatly improve safety, journey times and network resilience, while enabling the historic Grade II* listed original bridge to remain in place.
“This project is part of the Welsh Government’s commitment to improving transport links between North and South Wales.”