Wendy Alexander: "Business will also benefit"

Mr McConnell said that transport was one of his "five key priority areas" and he hoped that through the project Scotland's economy would prosper.

It represents one of the biggest road building projects in Scotland.

A new stretch of motorway will be built, extending the current M77 from Malletsheugh in East Renfrewshire to the Kilmarnock bypass at Fenwick.

The proposed M77 extension will be joined by the Glasgow Southern Orbital (GSO) which will be built at the same time.

Improved system

The GSO will provide a major link between Ayrshire and Lanarkshire, reducing traffic in the East Renfrewshire communities of Clarkston and Busby, as well as bypassing Eaglesham.

It is estimated this will mean 8,000 fewer cars travelling through the conservation village every day.

The first minister said: "This announcement demonstrates that we are pushing ahead with the investment in our transport system which is required to deliver the improvements which will make a real difference to Scotland's travelling public."

The projects will create better urban and rural communities, Mr McConnell added.

Major step forward

Ms Alexander said she was determined to deliver an improved transport system.

She said: "Business will also benefit. I am committed to delivering an integrated transport system which meets Scotland's economic and social needs without threatening our environment.

"The removal of around 8,000 vehicles per day passing through Eaglesham, and particularly heavy lorries, will create a better living environment for those living along the existing route."

Both projects have the backing of East Renfrewshire, Ayrshire and South Lanarkshire councils.

East Renfrewshire council leader Owen Taylor said the tendering process represented a major and exciting step forward.

Construction work is due to begin early next year and the new roads should be opened in 2005.