The main phase of work will cost approximately £7.25 million with the wider investment for the project being approximately £10.25m.
Funding for the project is from housing development and the Falkirk Council's Capital Programme.
When complete, the 1.3km route will join the town’s Nethermains Road, Broad Street and Glasgow Road reducing traffic congestion in the town centre as well as improving air quality, better road safety and improved access helping to support the local economy.
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Councillor Paul Garner, Depute Leader of Falkirk Council said: "The construction of the DEAR will create a smoother traffic flow and offer more sustainable transportation options, including enhanced facilities for pedestrians and cyclists.
"It will also ease congestion as well as providing safer travel to Denny High School and better access to our existing path network.
"We know this has been a long-term desire of the local community and I'm absolutely delighted to finally see this work starting for visitors and residents alike."
Jamie Corser, Business Development Manager for RJ McLeod added: "We have delivered projects for Falkirk Council for over 20 years, including the Helix public realm and slip roads on the M876, and are really pleased to be part of their team once again. ?
"We're looking forward to working with the Council, and the local community, to successfully construct this important infrastructure project."
