The road is planned to run from Postwick on the A47 and go around the east and north of the city, to connect with the A1067.
Norfolk Chamber said it was "delighted" by the news and that the road would "unlock jobs and new homes".
But campaigners say the road will not solve traffic problems and will "damage the quality of life" for local people.
Norwich's northern bypass has been granted development consent from the government.