Funding for the congestion-busting Cross Tay Link Road project is set to be confirmed next week.
The First Minister is poised to announce additional support for the controversial project while visiting Perth on Monday.
Local politicians have been pushing for confirmation of funding for the massive infrastructure project after it was unexpectedly omitted from November’s Tay Cities Deal agreement.
The ambitious scheme will build a new bridge linking the A94 north of Scone with the A9 between Inveralmond and Luncarty.
It was a top priority for Perth and Kinross Council throughout the Tay City negotiations and is seen as essential to the city’s continued growth, but the bridge has been criticised for its potential to create air pollution.
Most of the funding was already in place with FM Nicola Sturgeon now set to confirm – in her first major announcement of 2019 – the outstanding £35 million shortfall will be met.
Sources close to the Scottish Government confirmed she is set to announce £50m for local projects, including the Cross Tay Link Road.
A Scottish Government spokesperson said: “As part of our previously stated commitment to invest £200 million in the area, the Scottish Government has already committed to invest £150 million in the Tay Cities Region Deal and will shortly set out details of the allocation of a further £50 million into the Tay cities region.”
The overall cost of the scheme will be largely funded by Perth and Kinross Council, with the remaining amount coming from the UK and Scottish Governments.
Council boss Murray Lyle said: “I am delighted it is coming and I would like to thank my colleagues from all political parties in achieving this success, which is fundamental to Perth’s future prosperity.”
The £120 million scheme, part of Perth and Kinross Council’s biggest ever infrastructure project, was taken off the table during prolonged Tay Cities Deal negotiations.
People in Perth viewed the designs during a consultation roadshow held last summer.
The plans show how the new bridge will cross both the Tay and the Perth to Inverness railway line.
The project will include a realignment of a mile-long section of the A9 between Perth and Luncarty, as well as a new four-mile link road connecting the A9 with Stormontfield Road, A93 and A94.
The project promises improved access to Scone Palace and Perth Racecourse and aims to remove traffic from the city centre.