Two firms have been shortlisted for the £18 million contract to improve the Haudagain roundabout.
Transport Scotland has announced Balfour Beatty Civil Engineering Ltd and Farrans Construction as the firms which will be competing to deliver the A90/A96 Haudagain Improvement project.
The project includes building around 500m of new dual carriageway connecting the A90 North Anderson Drive and the A96 Auchmill Road.
It is designed to fit in with the Aberdeen bypass and other measures being introduced across the city to improve journey times.
Transport Minister Humza Yousaf said: “The announcement is a further sign of this Scottish Government’s commitment to improving the roads in the North-east of Scotland.
“Not only have we reached this key milestone in the procurement today, but we are also progressing opportunities to undertake some work in adavance of the main construction.
“This would enable the main construction contractor to hit the ground running later in the year.
“We remain committed to tackling the bottleneck at Haudagain.
“Alongside benefits from the AWPR, the A90/A96 Haudagain Improvement Project will boost the local economy and bring much needed journey time benefits for road users and communities in the North-east.”
Transport chiefs say the scheme will reduce congestion and improve journey time reliability, along with bringing about an improvement in road safety and providing new pedestrian and cycling routes through the area.
Initial work to improve traffic flow took place last year with ground investigation works taking place.
Transport Scotland had previously announced that it had awarded a £213,000 contract for the ground investigation work to Environmental Reclamation Services Ltd.