A total of £170,000 will be spent improving the A666 in Darwen.
The money from Blackburn with Darwen Borough Council will pay for resurfacing between Lyndhurst Road and the slip-road to the M65.
Councillor Dave Smith, Sunnyhurst ward, said: "The road has needed work for some time because a new surface was put on a few years ago but it disintegrated and there are pot holes.
"I'm so pleased that money has been set aside for repairs. I have had a number of complaints about the road and I think that people who live near the area and drive on the road will be much happier as a result of it."
Work will start towards the end of the year.
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