The project will see the removal of the existing roundabout and widening of the M1 spur road to three lanes, to provide a continuous east-west carriageway with a speed limit of 50mph.
Two new roundabouts will be built to allow road users to join and leave London Road and the M1 spur. London Road itself would be realigned, to pass under the M1 spur, with pedestrians and cycle routes also provided.
The council will stump up £6.5m of its own cash for the scheme, and has already managed to secure £3m from private developers.
Congestion at the junction has been holding up final planning approval for the West Ferry Printers move from London to the former DHL base in Kimpton Road, Luton.