Luton Borough and Central Bedfordshire councils will now be seeking a contractor to build the Luton-Dunstable Busway after the project received £80.3 million worth of Government funding.
It is anticipated that detailed design work will begin in April, and that site works will commence in the summer with the 13.4km busway scheduled for opening in 2012.
The high-tech public transport system will improve journey times on bus services between Luton Airport, the town centre, Dunstable and Houghton Regis.
The services will be provided by specially-adapted buses capable of running both on their own track and on public roads.
In addition 265 bus stops away from the main route will be upgraded with real time passenger information, raised pavements for level boarding, and many with new shelters.
The majority of the busway will be a segregated route between Blackburn Road in Houghton Regis, through Dunstable, into Luton town centre and on to Kimpton Road. The route will then continue on the highway towards Luton Airport.