Peterborough City Council were successful in applying for the cash from the Government, which can be used to improve the road network – specifically focusing on traffic lights and using new technology to repair potholes.
The council has confirmed the money will be spent improving the junction between Taverners Road and Lincoln Road.
Central Ward councillor Mohammed Jamil said the work would be welcomed by residents.
He said: “The junction between Lincoln Road and Taverners Road is one of the most heavily used roads when going when the west of the city to the east of the city. As a consequence, this is also one of the most polluted parts of the city with very high levels of pollution from the traffic.
“As Central Ward councillors we would welcome any efforts to bring about an improvement in the quality of the air for the residents of Central Ward.
“We understand that any work that takes place will mean some short term inconvenience but it would be better for the long term.”
The council’s bid was based on data the authority holds on each of its traffic lights, which identified the junction as being in need of improvement.
The upgrade will aim to incorporate and address all improvements required at the site in terms of traffic signal operation and maintenance for all users.
No further details on the upgrade are available, but work could start this year.