The Department for Transport (DfT) has awarded the money for the construction of a new motorway junction on the M275 accompanied by a park and ride facility and a southbound bus priority lane.
Portsmouth City Council secured the money to go alongside more than £8.5m it is investing in the project, which is vital to the city's overall regeneration plans.
Cllr Mike Hancock the council's Cabinet Member for Planning, Regeneration and Economic Development, said: "I'm delighted the funding has been confirmed.
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"The new junction and park and ride in Tipner are key to Portsmouth's regeneration strategy.
"Not only does it enable us to improve that area of the city, but the sustainable transport link it creates is invaluable to the future development of the city centre and seafront."
The new junction would provide access to the park and ride on the east of the M275 as well as unlocking the land to its west for future development.
There will be no access for motorway traffic to reach existing residential areas in order to prevent rat-running in the area.
The park and ride site has plans for 663 spaces, providing sustainable transport to cater for increasing numbers of visitors generated by a redeveloped city centre and seafront, as well as for commuters and major events in the city.
Kathy Wadsworth, director of regeneration at the council, said: "Tipner's regeneration is a huge project. There is a lot of good work happening in the area to clean up land and create a bright future and this funding brings our vision a big step forward."
Work on the project will begin in January 2013 with completion expected in spring 2014.
(CD/GK)
