The government of Saskatchewan and Alberta will split the cost of building three passing lanes on on Highway 17 north of Lloydminster.
Provincial highways minister Lori Carr says there will be three sets of passing lanes over 47-kilometres, which is also used by the energy and agricultural sectors.
Construction of the passing lanes could be at least a year or two away. The first steps will be the design and tendering.
The inter-provincial project is proceeding under the Collaboration on the Advancement of Economic Corridors Memorandum of Understanding.
The two governments have also been collaborating on plans to complete the La Loche to Fort McMurray all-weather road, known as Highway 956 near Garson Lake, Sask. Greater progress has been made to date on the Saskatchewan side of the border.