The roundabout forms part of the £26.4m first phase of the scheme to ease congestion by building a 4.34km road to the east of Eastergate, Westergate and Woodgate villages.
Permission to build the initial 1.3km stretch of road linking Fontwell Avenue (A29) with Barnham Road (B2233) was given in June 2021.
Work started last year, with the demolition of greenhouses at the former Fleurie Nursery, on Barnham Road.
Now Joy Dennis, West Sussex County Council’s cabinet member for highways and transport, has given the all-clear for a procurement process to start.
And she also gave permission for negotiations to be held and agreements made to acquire the land needed for the roundabout.
A report from Matt Davey, assistant director for highways, transport & planning, said the roundabout was an essential part of the A29 realignment scheme.
It added that early implementation of the roundabout would allow work to be carried out to move the access to the Halo car repair centre, closing its current access on Barnham Road.
It would also give access to land south of Barnham Road which has been earmarked for a proposed primary school.
The aim of the new A29 is to provide a more reliable connection to Bognor Regis, reducing traffic – especially at the Woodgate level crossing and the War Memorial junction – and accessing land that has been allocated for development in the Arun Local Plan.