In a statement, Transport Minister Simeon Brown announced plans to build an overpass to replace the Pegasus roundabout and provide better access for Pegasus, Ravenswood and Woodend residents.
The overpass will provide SH1 traffic with seamless access over the busy intersection, with signalised on and off ramps included in the design.
Local traffic will be able to move between Ravenswood, Pegasus and Woodend without conflict with state highway traffic.
A grade-separated interchange will also be built to separate traffic at the Williams Street intersection with SH1 at Pine Acres, north of Kaiapoi.
Woodend-Sefton Community Board chairperson Shona Powell said the overpass was "the best news".
"It has been waiting on that design at the Pegasus/Ravenswood intersection.
"There is just so much turning traffic there now, so this is very good news.
"It is very good to hear the progress. It makes you believe it is finally going to happen."
Waimakariri deputy mayor Neville Atkinson said it will be welcomed news for local residents.
"It has been a long time coming and the council has always been supportive of this project, so we are delighted that it is moving forward at the pace it is."
Brown said the announcement is a "significant milestone" which will unlock land for housing in the Waimakariri district and provide more reliable connections to key freight hubs and export markets.
"SH1 north of Christchurch provides access to the Christchurch CBD, Christchurch International Airport and Lyttelton Port.
"It is a key freight route and an important connector route for commuters and tourists."
Traffic volumes are expected to increase by up to 28,000 by 2048.
"The Canterbury region needs this vital Road of National Significance to support economic growth and get people and freight to where they want to go, quickly and safely," Brown said.
"This project will remove congestion bottlenecks which will improve travel times by up to 11 minutes during peak times."
The Belfast to Pegasus Motorway and Woodend Bypass will be a 10km, four-lane motorway extension of SH1 north of Christchurch.
Brown said NZTA will release a request for tender for detailed design and construction supervision this week.
The first stage of early works will likely begin in early 2026 with preparation for road widening to four lanes between Lineside Road and Cam River, while the main physical works are expected to begin later in 2026.
By David Hill, Local Democracy Reporter
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
