Plans will now be drawn up to see how the road, which passes through the Llanwern steel works, can be improved to allow public traffic to use the route. The aim is to upgrade the road to a dual carriageway.

The works will be part of a package of the Welsh Assembly Government’s measures to address issues such as capacity, safety and resilience along the M4 corridor. Other work already underway include improvements to motorway junctions, the creation of more train stations and park and ride facilities throughout South East Wales and enhancements to the local road network.

Deputy First Minister Ieuan Wyn Jones said: “The M4 is a vital economic artery through South Wales and we are taking action to make sure it is improved and that traffic flows smoothly. I announced last year that a new M4 relief road was simply too costly on economic and environmental grounds.

"Since then we have been working tirelessly to look at every option available to improve the road and address safety and capacity issues. Buying the Queensway Road is the latest step in our plans.

"It will improve the M4’s capacity and relieve pressure on the more congested points. Importantly it is both sustainable and affordable. The Welsh Assembly Government will now work closely with Corus and Newport City Council to improve the road.�

Uday Chaturvedi, Managing Director of Corus Strip Products UK said: “The Llanwern site plays an important role in the South Wales steel industry. The agreement between the company and the Welsh Assembly Government forms part of our vision for the further development of the site for mutual benefit.�

The purchase cost £7.7 million and the first phase of road construction is set to start immediately when the Welsh Assembly Government and Newport City Council begin to upgrade the road.

Traffic management arrangements will be put in place to carry out the necessary work and a specific communication will be issued closer to the start of the works.