Gloucestershire County Council is preparing to decide whether to move the M5 Junction 10 Improvements Scheme into its main construction phase.
A report due to be considered by Cabinet in June seeks approval to begin the next stage of the project, with construction expected to start later this year if agreed.
The scheme will create a new fully accessible motorway junction, improve the A4019 corridor and deliver a new link road serving west Cheltenham.
Council leaders say the project will help unlock more than 20,000 new homes, including 7,000 affordable properties, while supporting the Golden Valley development and a planned cyber technology hub expected to create around 12,000 jobs.
The overall programme, which also includes improvements at Arle Court Transport Hub and the A38/A4019 junction at Coombe Hill, has a combined value of £407 million.
Most of the funding has been secured from central government, alongside developer contributions and Community Infrastructure Levy funding linked to future housing and employment growth.
Councillor Julian Tooke described the scheme as a “transformational project” that would improve transport links while supporting long-term economic growth across Gloucestershire.