The consortium BAM/McCann have been appointed as contractors for the £40m Magherafelt bypass.
FP McCann is based in Knockloughrim, while BAM Contractors have their head office in County Kildare.
Work on the scheme is expected to start within weeks.
Ulster Unionist Assembly Member for Mid-Ulster, Sandra Overend, today welcomed the announcement, saying it would secure jobs for a local workforce.
Mrs Overend, who is the Assembly Private Secretary to the Regional Development Minister, continued: “The scheme should significantly reduce the traffic congestion in Magherafelt town centre.
“The bottlenecks that currently build up in Magherafelt not only delay the through-traffic, but also deter business from the town centre.
“When I previously met with members of Magherafelt Chamber of Commerce who were lobbying in support of the bypass, they outlined research that has been undertaken to show that traffic congestion in the town centre would reduce by 25%, and that congestion on the A31 road from Castledawson roundabout would be reduced by 35%.
“The improved road safety, speedier journey times and reduced congestion will clearly bring benefits for people in the Magherafelt area and I have spoken to constituents, among them commuters, customers and local business owners who have welcomed the news.
“This road links Mid Ulster to the M2, connecting the area to Belfast and the north east. Progressing this sort of roads infrastructure project can make a real, positive difference to the economy.
“The short-term benefits of employment for the construction industry and the longer-term benefits of a reliable infrastructure for business are a significant economic driver and I look forward to the project getting underway.”