The work will enable detailed designs to be finalised, allowing the County Council to submit for bids for national or local funding opportunities when they become available.
Building a new bypass at Botley is estimated to cost £26million. It will provide a brand new 1.8 kilometre single carriageway road that will pass to the north and east of the village.
The bypass will divert traffic from the main A334 through Botley, north from Maypole roundabout onto an improved Woodhouse Lane, and then south east onto the new Bypass running to the south of the railway line - which would then re-join the A334 at the junction near to Pinkmead Farm.
Commenting, Mims Davies MP, said: “Approximately 80% of traffic currently passing through Botley is non-local through traffic and will be encouraged to divert onto the bypass. This will provide the opportunity for significant improvements in the High Street for residents and businesses made by removing this traffic.
“I am delighted Hampshire County Council has progressed this scheme, listening to residents and working toward a suitable solution which will change lives. I thank Councillor Humby and all the team involved for working with me, the Parish Council and others to bring this key scheme forward.”