Wokingham Borough Council has successfully bid for £1.85m of Government funding under the Local Pinch Point Fund (LPPF) - and plans to improve the hotspot by the end of next year.
The Coppid Beech roundabout is regularly busy because it links the A329(M)/M4 to Wokingham town centre, western Bracknell, and residential areas in both boroughs.
The work, which will begin next summer, will widen slip roads, install new signals and improve access for pedestrians and cyclists. The LPPF will cover the majority of the £2.65m cost of the Coppid Beach works, with the other £800,000 coming from developers' contributions.
The council has been given a further £2.65m towards the cost of a new link road by Wokingham railway station.
Cllr Keith Baker, executive member for highways and planning at the council, said: "This funding is extremely important for Wokingham, its residents and its businesses, because it means we can address two areas of significant congestion within our borough." Wokingham Borough Council will lead the Coppid Beech junction scheme in partnership with Bracknell Forest Council, the Highways Agency and developers in the two Strategic Development Locations (SDLs) to the north and south of the town - where about 4,000 homes are due to be built by 2026.
Cllr Baker added he expects the new improvements to help boost the local economy.
He said: "Once finished, these schemes will also help unlock the full potential of the town centre regeneration, as well as aid the new strategic development locations in the north and south of Wokingham."
The new road by Wokingham railway station will cut across the station site, from the A321 Wellington Road to the A329 Reading Road.
The 336m road will start in the forecourt of Wokingham station and join Reading Road by the site of the former Rethink centre for people with mental illnesses.
That building at 48, and also 50 Reading Road, were demolished earlier this year. The link road is part of the £6m scheme to redevelop the town's train station into a 21st century travel centre.
The station is being remodelled by Network Rail and is due to open this summer.
The new road will relieve congestion at the railway crossing on Barkham Road and improve access for people using the station.
The link road site has already been prepared and is being cleared.
Construction is due to start this autumn with the new road open by summer next year.
The aim of the LPPF is to improve the movement of goods and people on local roads, and therefore assist economic growth in those areas.