When complete, Cobham Dr will be raised to allow the four-laned Wairere Dr to pass beneath it, accompanied by extended shared walking and cycling paths.
The new intersection and overbridge will have on and off ramp connections, with allowance for Wairere Dr to be extended in the future to the Southern Links road network, supporting future growth in Peacocke.
City Development Manager Andrew Parsons says this is a unique opportunity.
"Completing the Ring Road will be significant for the city with the Transport Agency recognising the long-term traffic benefits this will bring, and possible future connection into Peacocke," Mr Parson said.
The council's Growth and Infrastructure Chair councillor Dave Macpherson says this is a positive sign for Hamilton.
"This is an outstanding result for the council and Hamilton and I'm very happy about the design which will be a big boost to walking and cycling facilities in the area," said Mr MacPherson.
"We have some big challenges facing our city about how to fund the large amount of infrastructure our growing city needs. To do this we need to look into smart solutions and good partnerships. This is a great example of what can be achieved."
The council will now work with the Transport Agency to formalise the funding agreement and consider the overall project for approval as part of the 2018-28 10-Year Plan decision.
This additional funding means the council's Housing Infrastructure Fund (HIF) proposal has been reduced by $18m from $308.4m to $290.4m. The revised HIF amount, approved by Minister Grant Robertson and Minister Phil Twyford, totals $290.4m including $110.1m of the Transport funding and $180.3m of a 10-year interest free loan.
This funding agreement does not bind the council to the Housing Infrastructure Fund, with completion the Ring Road as stand-alone project for the city.
The council will be consulting on its draft 10-Year Plan in March 2018 which includes the option to develop Peacocke as the primary suburb for housing growth.
