The four-mile dual carriageway for Arundel will draw traffic away from Arundel town centre and reduce 'rat-running' on minor roads through the South Downs National Park.
In addition, the plans include improved routes for pedestrians and cyclists including a continuous dedicated path along the existing road around Arundel.
Highways England said the preferred route – a variation of Option 5a put forward at last year's consultation – strikes the right balance between creating vital new road capacity and protecting the special environment and cultural heritage in and around Arundel.
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Construction work is scheduled to begin in 2020.
Alan Feist, Highways England A27 programme lead, said: "These ambitious plans will fill in a missing link on the A27, improving 21,000 journeys every day for drivers from Arundel and beyond.
"Nearly 10,000 people took part in the consultation, and today's announcement reflects their views and feedback. We will continue to work with people and take their views into account as we further develop the project's design so we can deliver a project that successfully improves journeys, respects the environment and helps to enhance the historic town of Arundel."
Residents are now being invited to three public drop-in events to give the public an opportunity to talk to the project team. The events will be held from 6pm – 7.30pm at;
• Arundel Town Hall, Maltravers Street, Arundel, BN18 9AP – 15 May
• The White Swan - 16 Chichester Road, Arundel, BN18 0AD – 18 May
• Hilton Avisford Park - Yapton Lane, Walberton, Arundel, BN18 0LS – 22 May
(LM/MH)
