The Highways Agency has agreed a seven-year contract with services and consulting group Mouchel and electronic systems company Thales worth £57m.
The deal is to replace the National Traffic Control Centre ageing data processing and publication systems.
The new National Traffic Information Service (NTIS) will deliver traffic information to road users.
"The NTIS is central to the Highways Agency's role of managing traffic and making the most efficient use of the existing road network. Timely and accurate traffic information helps both private and commercial road users to plan their journeys, avoiding delays and congestion that add to the cost of journeys," said roads minister Mike Penning.
Penning also indicated that the new system will deliver "considerable savings" to the Highways Agency.
The NTIS will collect traffic data to give a real-time national view of traffic conditions, and assess the impact of events and traffic flows to help Highway Agency staff make decisions on the best response. Traffic and event information will be provided through numerous platforms including roadside electronic message signs, various web sites and Google maps.
The Highways Agency has also indicated that the contract allows for possible additional services to be provided, and if this was to be agreed by all parties, the deal could be worth up to £99m.
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