The city, state and CBL & Associates are cooperating on a $40 million plan to make the Hamilton Place section more accessible to Interstate 75.
The upcoming project will provide a direct connection for southbound I-75 traffic with Hamilton Place Boulevard.
The project will also provide a new connection for those on Hamilton Place Boulevard to enter I-75 northbound.
Officials said it will help ease congestion on Shallowford Road, which is the exit by Hamilton Place Mall.
The city's share will be 20 percent - or $8 million.
City officials said CBL & Associates, owner of the mall and nearby smaller shopping centers, has agreed to pay the city's share so there will be no cost to the city.
CBL is to fund the environmental study and preliminary engineering design costing $3.4 million late this summer or early fall.
Chattanooga-based CBL will provide $1 million when the project is ready to go to bid.
It will pay its remaining share after the project is out for bid.