£102m of funding has been released by the government to create a new link road and 10,000 new homes at St Cuthbert's Garden Village.
The remaining £10m will be provided by Cumbria County Council and Carlisle City Council.
The link road will connect the south of Carlisle at the A595 to the M6.
The Village is receiving £300,000 from the Government to help Carlisle City Council's ambition to deliver 10,000 homes.
The county council worked with Carlisle City Council and Homes England to develop the proposals following the consultation exercise which resulted in the preferred ‘green route’ being announced in June last year.
A spokesman from Pirelli in Carlisle has told ITV Border :
