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Roads Minister Connor Murphy said improvements will be carried out on-line along the entire route between Pennyburn Roundabout and the border.
The existing carriageway will be widened on-line to provide two lanes of traffic in each direction and will include work to improve the efficiency of major junctions along the route.
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It is also intended to introduce measures to provide benefits for public transport as well as providing improved facilities for pedestrians and cyclists.
Minister Murphy said: "This project will provide significant benefits in terms of improving traffic flows, reducing delays and improving safety for all road users along the whole length of this busy route."
This project is part of an overall strategy to improve the network of Key Transport Corridors across the north.
"Completion of this preferred route selection leads onto detailed design considerations and the preparation of Statutory Procedures," added Mr Murphy.
(PR/JM)
