A Board of Inquiry has granted consent for the Puhoi to Warkworth motorway north of Auckland, known as the "holiday highway".
The New Zealand Transport Agency acting highway manager Steve Mutton said the draft decision from the Board of Inquiry was welcomed by NZTA.
"The draft decision is great news and an exciting and important step towards improving transport connections between Auckland and Northland and the rest of the upper North Island," Mr Mutton said.
Read more:
• Labour MP backs 'holiday highway'
• Claim Warkworth will be worse off after extension
The first stage of the project involves constructing a 18.5km four-lane motorway from the Johnstone's Hill tunnels on State Highway 1 north of Auckland to a roundabout north of Warkworth.