Transport Minister Keith brown has said the two councils responsible for the Aberdeen bypass will not have to pay more than £75m each.
Mr Brown explained that both Aberdeen and Aberdeenshire Councils would have the amount they contribute towards the total cost of the A90 upgrade, capped.
The total cost of the A90 upgrade between Balmedie and Tipperty is £745m.
This means the Scottish Government will pay 81% of the project, with the council's paying 9.5% each.
The Aberdeen Western Peripheral Route (AWPR) was initially given the go-ahead by Scottish ministers in 2009, but any action on the scheme was delayed by legal action.
Work is now expected to begin on the 28-mile bypass in 2014 and be completed in 2018.
In addition to the funding announcement, the shortlist of bidders was also unveiled for the contract.
Four consortia will compete for the contract. They are Granite City, North East Roads Partnership, Scotia Roads Group and Connect Roads.
Mr Brown said: "The benefits of the AWPR and Balmedie are clear, with the scheme expected to deliver 14,200 jobs in the north east and boosting the economy to the tune of £6bn over the next 30 years.
"After years of delay, we should not underplay the need to ensure the pace in delivering this vital project continues."
The A90 scheme will see the busy stretch between Balmedie and Tipperty in Aberdeenshire become a dual carriageway, improving safety and providing faster journey times between Aberdeen and Ellon.
(JP/CD)
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