The �31.9m scheme will link development land with the M1 motorway

The road will link the so-far unused junction 45 of the motorway at the back of the Temple Newsam estate with the Aire Valley and inner ring road.

Thousands of jobs and business chances will be created when the 400-hectare (988 acres) brownfield site is opened.

Work will start on the 4.5km (2.7m) dual carriageway in November 2006.

"Fantastic news"

The new road will link with the city's inner ring road at South Accommodation Road, with the project expected to be completed four years later.

Leeds City Council leader Andrew Carter said the scheme was "fantastic news".

The Department for Transport has agreed to increase its funding of the scheme from �9.5m to �14.8m taking the total cost of the plan to �31.9m.

Council officials said the new road would open up huge development opportunities on one of the largest regeneration areas in the north of England.

Private sector investment in the area is expected to create around 30,000 jobs over a 10-15 year period.

'Key priority'

And existing businesses in the thriving Cross Green industrial estate would have direct access to the country's main arterial roads.

Mr Carter added: "The east Leeds link road will enable us to develop one of the most significant areas of new investment and employment opportunity in the Yorkshire and Humber region."

Planning permission has already been granted for a 1.1m sq ft office and hotel development at Skelton Business Park next to the unopened junction 45.

A planning application has also been submitted for a mixed use development on 40 hectares (98 acres) of land at nearby Skelton Moor Farm.

Ed Anderson, a member of the Leeds Initiative board and chairman of Transport Leeds said: "I have been aware for over 15 years of the massive benefits that the east Leeds link road will bring to the city and it has long been a key priority in the city's transport and economic plans."