"This is a really great day for the entire Edmonton-region economy," Premier Jason Kenney said at a Thursday afternoon news conference.
The new interchange at 65 Avenue in Leduc will include an overpass over the QEII, as well as new on and off ramps in addition to other area intersection and road improvements.
The $96-million cost of the project includes a little more than $5 million already spent on engineering, design and land acquisition.
The province said construction is expected to take three years and create about 470 jobs across Alberta.
"Unlocking the full economic potential of our region is a top priority for the City of Leduc and our Edmonton Metropolitan Region Board partners, and this critical infrastructure investment is a groundbreaking step forward." said Bob Young, City of Leduc Mayor.
"We are thrilled for the development to move ahead with the support and collaboration of the Province of Alberta and our valued regional partners.