This means the development of Welborne Garden Village, which has been in the works for over two decades, is guaranteed to move forward.
Havant fire crews rushed to an electrical fire which severely damaged the garden fence
The village of 6,000 houses needs the junction to be completed to cope with the expected increase in traffic.
A further £50million will be provided by the Welborne project, with the government providing the rest of the money.
Fareham Borough Council leader Cllr Sean Woodward says he is “delighted” the money has been secured.
He said: “I have always promised that no bricks will be laid until the infrastructure funding is in place.
“People said it would never happen, that we would never have the money, but we did.
“The bottom line is that we need new homes in Fareham and without Welborne we would be looking for other sites.
“Also, the advantage of having a community of this size is that you get the infrastructure that goes with it, like schools, shops, health facilities, etc. You don’t get that by adding more houses to existing developments.
The Welborne development itself will be undertaken by Buckland Development Ltd, while Hampshire County Council will take the lead on Junction 10 work.
A call for tenders for the completion of the design and construction of the new Junction 10 has just been launched.
John Beresford, Managing Director of Buckland, said: ‘The vision and delivery strategy we have for Welborne has long been aimed at making it one of the best places to live and work – we are really delighted that our vision and their political objective have come together in this way.
“The advance funding is a major step in unlocking delivery so we can start delivering homes and jobs in the area.”
Sophie White from Homes England added: “We are committed to working with ambitious local authority partners who seek to meet their local housing needs through the delivery of key infrastructure.
“Our multi-million pound funding will provide strategic transport infrastructure for the new Welborne Garden Village, unlocking 6,000 high quality homes and jobs in the area.”