The Department for Transport has announced 34m funding towards the 45m Bristol Metrobus rapid bus network, to be opened in April 2016.
The city will have better bus connections between key areas of employment, housing, retail and leisure.
The network will tackle congestion, create regeneration and support new jobs and homes.
Transport Minister Baroness Kramer says: â€œThe Bristol Metrobus will provide a step change improvement for public transport, serving not just the city itself but also surrounding communities.
â€œBuses will be able to get around quickly, travelling along dedicated busways and priority lanes around Bristol and into the city centre.
â€œOur 34m investment shows we are serious about funding infrastructure to drive economic growth.â€
Bristol Metrobus will encourage car drivers to shift to public transport.
Existing bus services in the west of the city will also be able to use the new infrastructure with faster travel times.
The scheme will provide a new bus service from the south-west of the city to the centre along a new 2.5-mile segregated busway from Long Ashton park-and-ride.
The dedicated busway follows old rail routes and will have a new bridge over the Bristol-Portishead rail line.
The city centre section will run on existing roads with bus priority measures including bus lanes and upgraded junctions.